Skip to main content

Over the Top Video Revenue to Exceed $20B by 2015

According to the latest market study by ABI Research, American companies like Netflix, Hulu, Apple and Amazon helped to drive the over-the-top (OTT) video entertainment market past $8 billion in 2012.

The three largest markets -- North America, Europe, and Asia-Pacific experienced year-over-year growth in excess of 50 percent in 2012.

The continued spread of connected consumer electronics (CE) and increasingly mobile devices -- such as media tablets -- are expected to push the market past $20 billion by 2015.

"The shift to digital and OTT distribution is accelerating, particularly as content providers increasingly warm up to these channels,"  Michael Inouye, senior analyst at ABI Research.

While traditional pay-TV services are still afforded many advantages, now it's the content owners who will decide if they continue down the same path or forge ahead -- disrupting the primary means of legacy media distribution.

The dynamics around revenue generation continue to change and currently vary by region. Asa an example, subscriptions are more significant in North America than they are in Europe or Asia-Pacific regions.

In time, however, ABI says that they expect a greater diffusion of revenue across the various business models. For instance, in 2012 58 percent of OTT video revenue came from subscription service, but ABI anticipates this share to fall to less than 32 percent by 2018.

In large part this movement is driven by a continual shift in consumer demand towards newer forms of digital content distribution. When people have a choice, they will drive change in the marketplace.

"While we still see great value and strength in the pay-TV sector we are also starting to see the pieces that will accelerate change fall into place," added practice director, Sam Rosen.

Whether it's Netflix expanding to international markets, or the ABC and CBS TV networks enhancing catch-up services, the building blocks that will restructure the how, when, and where consumers view content are starting to give shape to a new media landscape.

This future, however, isn't devoid of traditional media nor is it a matter of new channels necessarily winning, but rather a redistribution of wealth within the overall value chain.

Popular posts from this blog

Demand for Quantum Computing as a Service

The enterprise demand for quantum computing is still in its early stages, growing slowly. As the technology becomes more usable, we may see demand evolve beyond scientific applications. The global quantum computing market is forecast to grow from $1.1 billion in 2022 to $7.6 billion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). That's a five-year compound annual growth rate (CAGR) of 48.1 percent. The forecast includes base Quantum Computing as a Service, as well as enabling and adjacent Quantum Computing as a Service. However, this updated forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021, due to lower demand globally. Quantum Computing Market Development In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on inve

AI Semiconductor Revenue will Reach $119.4B

The Chief Information Officer (CIO) and/or the Chief Technology Officer (CTO) will guide Generative AI initiatives within the large enterprise C-Suite. They may already have the technical expertise and experience to understand the capabilities and limitations of Gen AI. They also have the authority and budget to make the necessary investments in infrastructure and talent to support Gen AI initiatives. Enterprise AI infrastructure is proven to be expensive to build, operate and maintain. That's why public cloud service provider solutions are often used for new AI use cases. AI Semiconductor Market Development Semiconductors designed to execute Artificial Intelligence (AI) workloads will represent a $53.4 billion revenue opportunity for the global semiconductor industry in 2023, an increase of 20.9 percent from 2022, according to the latest worldwide market study by Gartner. "The developments in generative AI and the increasing use of a wide range AI-based applications in data c

Global Public Cloud Spending to Reach $1.35T

Most digital transformation is enabled by cloud solutions. Worldwide spending on public cloud services is forecast to reach $1.35 trillion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). Although annual spending growth is expected to slow slightly over the 2023-2027 forecast period, the market is forecast to achieve a five-year compound annual growth rate (CAGR) of 19.9 percent. "Cloud now dominates tech spending across infrastructure, platforms, and applications," said Eileen Smith, vice president at IDC . Public Cloud Services Market Development IDC believes that most organizations have adopted the public cloud as a cost-effective platform for hosting enterprise applications, and for developing and deploying customer-facing solutions. Looking forward, the cloud computing model remains well positioned to serve customer needs for innovation in application development and deployment -- including as data, artificial intelligence