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Global Video Over-the-Top (OTT) Services Market

Global Video Oven-the-Top (OTT) Services Market МOVIE NIGHT Oven-the-Top (CTT) is the delivery of media content over the internet without the involvement of any operator in the control or distribution the content. The 4 Models of OTT Subscribe Subscription (SVOD): Fixed monthly/daily fee - Unlimited access to the entire or part of a video library Adventisement (AVOD): Zero/minimal cost - Ad-supported video content for subscribers. Download To Own (DTO): video - Legal download of video Rental/Pay per View (PPV): Fixed price per Fixed price for time interval - Access to the user's device but restricted to the dis- to video content specified by the user tributor's platform. Revenues - By Model 2010 CAGR (2010-15): 44/. 0.4 0.6 2 2015 2 3 10 26 CAGR (2015-20): 14.5/. 2020 2 21 22 51 Values in USD Bn. SVOD AVOD DTO Rental/PPV Drivers for global OTT market growth: Widening reach of the internet Growth of on-demand video streaming SVOD Model (largest revenue share) Approx. 42/. by 2020 overtaking OTT advertising • Proliferation of connected devices Revenues - By Region (2015-2020) 2015 2020 51. 40% 2015 2020 24/. 271. North America Europe 2015 2020 71. 57. 2015 2020 Middle East & Africa 4/. 67. 2015 2020 141. 22/. Latin America Asia Pacific North America Revenues: Factors for accelerated growth of 2015 - 13.2 billion USD APAC market from 2015-2020 2020 - 20.5 billion USD • Increasing broadband connectivity • Rising demand from large enterprises. USA's share of north American Market: Approx. 93-95/. by 2020. Source: Digital TV Research, New Articles, Company Websites, Aranca Analysis Revenues - By Top Countries (2020) CK us 19.10 China 2.82 Japan 2.40 Uk 2.15 Germany I.60 Canada 1.40 France 1.19 Italy 1.12 Source: Digital TV Research, New Articles, Company Websites, Aranca Analysis Competitive Landscape NETFLIX amaz n D viewster instant video > Subscribers 80 Million > Subscribers 40 Million Subscribers 20 Million hulu Sky Go Subscribers 12 Million Subscribers 10 Million Other Key Players HBONOW" CRACKLE hotstar ANDROID APP ON Google play CinemaNow ® Smart Entertainment Claro- video sling iTunes TELEVIS ION BBC iPlayer DRAMAFEVER MUBI IROKO Trends Drivers Challenges Social TV/Augmented TV • Content programmers have started capitalizing Rising Advertisement Revenues • Advertisement revenues have been High Subscriber Churn • Due to a large number of players offering OTT services globally, the number of options for a viewer to view steadily shifting from traditional TV to OTT services. on the additional screens through devices such as PCs and smartphones, by a particular content has increased, resulting in a high churn rate. • Lack of contracts, and ease of subscribing and unsubscribing from • It is estimated that by 2020, enabling interaction among viewers there would be no distinction in the form of information, videos, between OTT and traditional TV and photos related to the content. advertisement space buying. • Content programmers can extend consumers' engagement with the • The increase in advertisement services reduce the stickiness of revenues is expected to drive OTT services based on the AVOD model. customers to the service. content by offering additional information and videos about plots, Rising Demand for Localized characters, out-takes, alternate 4G Network Growth Content endings, etc. • 4G networks have seen a rapid growth in development and adoption, with more than one billion 4G connections, across 450 • Regions such as Asia and Africa has a specific regional demand for localized content due to its diversity in terms of demographics and languages. • As a result, international OTT players are facing strong competition from local pay-TV providers over licensing of existing local content libraries. networks, in over 150 countries. • Even though home broadband serves as the key enabler of OTT adoption; mobile data services offer means of expanding the addressable market. ARANCA VIEW The global video OTT market is expected to grow at steady pace of 14% CAGR to reach USD 51 Bn in 2020, presenting opportu- nities to key industry participants which includes content creators, distributors and OTT service providers. Apart from North America, Europe and the APAC markets provide attractive opportunities owing to the high Internet penetration, faster broadband speeds and the upward trend in online spending. In terms of content distribution models, SVOD and AVOD are expected to continue dominating the market. Haranca Compiled by: Jay Parekh ©2017 Aranca, All Rights Reserved. If you wish to reproduce or use this infographic in any format, please email us at Va BUSINESS RESEAROH NVESTMENT VALUATION FIXED INCOME RESEARCH TECHNOLOGY PROCUREMENT & TRANSACTION BESEARCHA INTELLIGENCE & IP ADVISORY SUPPLY CHAIN ADVISORY ANALYTICS ANALYTICS RESEARCH INTELLIGENCE

Global Video Over-the-Top (OTT) Services Market

shared by aranca on Jul 28
The global video OTT market could be worth USD 51 Bn by 2020, presenting opportunities to key industry participants such as content creators, distributors, and OTT service providers. Explore our work...


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