Over-the-Top (OTT) video which is better known by many as streaming video, is growing in popularity today. From Netflix to Hulu and even brands launching more personalized services like Disney +, there are so many reasons why this market continues to explode today.
Recent predictions from ABI Research show that subscription services and advertising will contribute to an increase in revenues for OTT video and growing it to over $200B by 2024.
In addition to the new brand TV services, there is also an aggressive push for more affordable pricing and package offerings that are fueling the uptick in this market. Even beyond the U.S., subscription video on demand is soaring.
In markets such as the Asia Pacific, the report found that services from iQIYI/Baidu, Tencent, Youku, and others are helping to make subscription TV services delivered over an Internet connection and part of a pay-for plan so popular.
With the internet and mobile technologies also advancing, this will only continue to bolster the market as well. 5G networks and next-gen OTT services offer greater speeds and security while improving latency and capacity to stream this type of content.
“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,” said Michael Inouye, Principal Analyst at ABI Research.
“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.”