Skip to main content

Over-the-Top Video Revenue to Reach $32B by 2017

By 2017, according to the latest market study by ABI Research, over-the-top (OTT) video entertainment service revenue will quadruple to $32 billion -- that's up from the expected $8.2 billion in 2012.

Monthly subscription services, such as Netflix, have led the OTT adoption trend the past couple of years, which has helped push the market towards healthy growth and sustained profit margins.

By 2014, however, ABI Research expects OTT on-demand rentals to surpass subscription revenues. The resulting impact on Cinema revenues is unknown at this time -- but we can anticipate a significant change, when more new releases are combined with the growing catalog of prior movies and documentaries.

"Connected consumer electronics (CE) and mobile devices continue to push consumer behavior towards newer forms of media distribution like OTT and multi-screen services, said Sam Rosen, practice director at ABI Research.

Pay-TV services will continue to thrive, by implementing multi-screen services and supporting OTT content. In the end, ABI expects an amalgamation of video entertainment services that complement each other will be attractive to many people.

In time, video advertising is expected to pick up momentum as ad revenue increasingly shifts to the OTT market. Connected CE and mobile or portable devices in particular present additional consumer touch-points -- enabling more creative ways for people to connect or interact with each other.

These devices are capturing more of our attention as many people claim to multitask while watching TV at home. Finding new ways to better engage them through OTT experiences, therefore, will prove increasingly important as consumers adopt new viewing behaviors.

"While many consumers today claim to use mobile and portable devices while watching TV, most of us are actuality poor at multitasking. In many cases this means consumers are more acutely aware about the content on their portable device than the TV, said Michael Inouye, senior analyst at ABI Research.

While second screen advertising -- on tablets or smartphones -- is not necessarily OTT content, it does highlight the importance of targeting these connected devices that extend the reach of content beyond the traditional TV set.

Popular posts from this blog

Rise of Software-Defined LEO Satellites

From my vantage point, few areas are evolving as rapidly and with such profound implications as the space sector. For decades, satellites were essentially fixed hardware – powerful, expensive, but ultimately immutable once launched. That paradigm is undergoing a transition driven by Software-Defined Satellites (SDS). A recent market study by ABI Research underscores this transition, painting a picture of technological advancement and a fundamental reshaping of global connectivity, security, and national interests. LEO SDS Market Development The core concept behind SDS is deceptively simple yet revolutionary: decouple the satellite's capabilities from its physical hardware. Instead of launching a satellite designed for a single, fixed purpose (like broadcasting specific frequencies to a specific region), SDS allows operators to modify, upgrade, and reconfigure a satellite's functions after it's in orbit, primarily through software updates. The ABI Research report highlights ...