The Over-the-Top (OTT) video market is expected to top over $200 billion (US) by 2024, according to a report form ABI research. 90% of that value will be fueled by subscription and advertising revenue according to a new report by the global tech market advisory firm.
Fresh and innovative services such as Disney+ and Apple TV+, along with somewhat ambitious pricing and packaging, and the continuous expansion by executives are further pushing the Subscription Video on Demand (SVOD) market to new levels.
Subscriptions in the Asia-Pacific region have increased dramatically. This is driven by key services in China (e.g., iQiyi/Baidu, Tencent, Youku Tudou/Alibaba Group) and ever-expanding opportunities in India. The ongoing shift to OTT is generating value for companies through the video value chain, including pay TV operators. The development of new technologies, such as 5G, will continue to provide the market with new opportunities.
“Cord-cutting is often regarded as a consequence of expanding OTT consumption, but the market dynamics are more complex, particularly when one considers how the pay TV industry has embraced OTT as a complement and value-additive, rather than strict competition. Over time, we expect the traditional pay TV offer to continue to evolve and become indistinguishable from a pure OTT package of services,” comments Michael Inouye, Principal Analyst at ABI Research.
Despite acquiring over 700 million OTT SVOD subscriptions last year, the pay TV market, with over 1 billion subscriptions, is still substantially larger. Furthermore, while growth rates are slower (and declining in North America), market in general is still expanding. The attention paid to low latency video is testament to how OTT video is growing but also highlights the ongoing opportunities with live/linear programming.
“Increasingly, we’re seeing more solutions and conversations about bringing content and services together. This includes pay TV and OTT bundles and extends to cross-platform advertising, analytics, and customer/service management. Ultimately it makes the market more accessible to a wider range of companies and expands the potential video touchpoints, particularly as new technologies like 5G, smart home, and Augmented/Virtual Reality play larger roles,” Inouye concludes.
The aforementioned findings are from ABI Research’s OTT and Multiscreen Video and Digital Content market data report. This report is part of the company’s Video and Cloud Services research service, which includes research, data, and Executive Foresights. Market Data spreadsheets are composed of deep data, market share analysis, and highly segmented, service-specific forecasts to provide detailed insight where opportunities lie.