Technology | Media | Telecommunications

Monday, January 24, 2011

OTT Video Services Growing to $20 Billion by 2014

2010 was an eventful year for the Over-the-Top (OTT) video market. There have been major developments in the retail segment, the Service Provider (SP) segment and the Internet segment. Some of these developments have been successful, while others are still a work in progress.

According to the latest market study by MRG, Inc., they now forecast that the global growth of OTT video services will exceed $1 billion in 2010 and $20 billion in 2014 -- based on over 40 OTT service operators and device vendors profiled in their study.

"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 incumbent 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 service providers assessed the pros, cons and the ROI results.

Smart OTT video devices analyzed includes 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.