OTT landscape 2017

OTT (Over-the-top) content, as we can read in TechTerms, refers to movies and tv shows that are delivered directly to digital users. No cable or satellite television subscription reqiuired. OTT content can be directly downloaded and viewed on user’s demand. OTT content, like movies and TV services are delivered directly over the Internet to connected devices (PC, smartphone, tablet, console). It’s probably a key part of the evolution of connected TV 2017, according to the Oyala experts. This sector is expected to increase fourfold by 2019. OTT subscription forecasted to generate $31.6 billion in revenue. And it’s still growing. According to the ClearBridgeMobile, direct-to-consumer model, is becoming a more complex ecosystem with more options for viewers. The global OTT services market is poised to grow at a CAGR of around 17.1% over the next decade to reach approximately $3.49 billion by 2025, according to the BusinessWire.

To understand better, OTT products and services, let’s start from the video market. The point is: how the OTT video content is consumed? Some analytics data by Worldplaynetworks service 2017 shows the following value:

  • 40% of users own a video streaming box or stick
  • 30% have a smart TV
  • 28% have a connected gaming console
  • 25% use a connected DVR
  • 7% own a connected DVD / Blu-Ray Player

platforms digital

Total OTT viewing hours 2017 (comScore)

Digital TV market has been primarily dominated by Netflix, Hulu, and Amazon. Already, major broadcasters are introducing OTT options: CBS All Access, HBO Now, DISH Sling TV. In 2016/2017 the OTT market saw a wide range of new services by brands like: ABC, FOX, NBC, Telemundo, Univision, many more.

Broadband TV reports that Pay TV and premium OTT services are likely to overlap significantly as broadcasters, studios and tech companies look for ways to reach audiences in the evolving TV landscape. It’s likely that bundling and distribution deals between OTT providers and pay TV services will increase and we’ll see more competitively priced packages introduced. Already, Netflix, Amazon, and Hulu are entering into multiple affiliate deals, such as the partnership between Netflix and DISH, and the deals between Hulu and Cablevision, Armstrong, Atlantic Broadband, and MediaCom.


Media devices incl. OTT (comScore)

Already, niche services like the MLB Channel have seen success. Industry experts believe niche offerings represent a opportunity mainly in the following areas:

  • Sports
  • Ex-pat, Ethnic, Foreign Language
  • Personality
  • Specialist Film & TV
  • Kids

Some analysts report features diverse markets with significant difference in penetration levels of smartphone, pay-TV and broadband. While developed countries have suitable environment for OTT video growth with developed telecom infrastructure, emerging countries show great potential on account of rollout of fiber and 4G technologies by operators, rising income levels and increasing penetration of low-priced smartphones. Hybrid models consisting of AVoD, SVoD or TVoD have been more successful in choses regions of the world. Widespread piracy makes the AVoD model important to attract people to legal video services. However, the arrival of international players Netflix and Amazon in 2016 has triggered the launch of a number of SVoD initiatives. Content remains the key to success in APAC, therefore both international and regional operators are heavily investing in acquisition and production of content. Looking at the market, we can quickly defined some leading global tech companies operating in OTT sector. The main players are:

  • Akamai Technologies
  • Apple, Inc.
  • Dropbox, Inc.
  • Evernote Corporation
  • Facebook, Inc.
  • Google, Inc.
  • Hulu, LLC.,
  • Limelight Networks, Inc.
  • LinkedIn Corporation
  • Microsoft Corporation
  • Netflix
  • Nimbuzz
  • Rakuten, Inc.
  • Tencent Holdings Ltd.
  • Yahoo Inc.

Source: Broadband TV, ClearBridgeMobile, Oyala, PRNewswire