Advanced Television

STUDY: OTT will exceed $20bn in 2014

November 30, 2010

A forecast from MRG projects that global growth of OTT video services will exceed $1 billion in 2010 and US$20 billion in 2014, based on over 40 OTT Service Operators and Device Vendors profiled.

“This is the most complete available analysis of connected OTT smart devices offering both live and on-demand video services,” says Mike Galli, MRG Analyst. “It’s a comprehensive guide to the next generation of smart home devices for video services connected via the Internet.”

Some of the case studies presented actually show how these services enhance the IPTV Operator’s Broadband revenue with relatively no or low investment, for smaller Operators; and with various levels of CapEx for larger Operators. Most of the results were based on updates of the early OTT trials determining how Operators assessed the pros, cons and the ROI results.

Smart OTT video devices analyzed include OTT set-top boxes, game consoles, smart TV sets, smartphones, OTT PCs, and Blu-ray devices. By tracking the OTT video ARPU (Average Revenue per Unit) for each smart device, the report projects total OTT video revenues broken into four global regions from 2010-2014.

OTT content preference by consumers is also probed, based on international consumer research. Besides stating their favorite OTT viewing devices, consumers clearly express their preference for recent movies & TV shows and other kinds of niche video content, reflecting how quickly consumer preferences are changing. Some of the more telling results include why smart device usage varies significantly depending on which rooms of the home they are in and who is using them.

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