Skip to main content

Video Entertainment Original Content Creation Trends

Digital TV and online video has seen the battle between Over the Top (OTT) providers and traditional television networks pushed to the forefront. In order to differentiate themselves, and reduce the need to rely on expensive content partnerships, OTTs will produce more of their own entertainment content.

According to the latest worldwide market study by Juniper Research, Subscription Video on Demand (SVoD) services -- from leading providers such as Netflix and Amazon -- will drive a surge in OTT revenues to reach $120 billion in 2022, and that's up from $64 billion in 2017. In this environment, the traditional expensive bundle of pay-TV services will surely continue their decline.

Original Content Market Development

The upside market opportunity for the innovative low-cost video entertainment providers is significant. The in-depth market research also uncovered that over a quarter of global households will eventually subscribe to SVOD services by 2022.

The new research found that expenditure by OTTs on original content was increasing significantly. As an example, Juniper estimates that Netflix will spend over $6 billion during 2017-18, in contrast to the publicly funded BBC, which is investing a comparatively small sum of $1.4 billion.

All the leading SVOD players, including Netflix, are seeking to out-spend traditional video entertainment providers; attempting to deliver original content and reduce reliance on expensive back-catalogs.


"Success will hinge on whether these providers can continue to produce hits such as ‘Stranger Things’. As consumers become more fluid in their uptake and loyalty to video services, OTTs could just as easily see users switch off," said Lauren Foye, senior analyst at Juniper Research.

In addition, Juniper found that some OTTs will pursue sporting event rights, with Amazon likely to bid for rights to the Premier League in February 2018. The research argued that with such content owned by different providers, customers will have to choose from multiple competing subscription options.

Outlook for New OTT Market Innovation

That being said, the research identified the potential for traditional broadcasters to hold an advantage over OTT firms in the provision of local content. Some regional OTT services have launched, such as iFlix, but these do not provide the same granular level of local coverage that broadcasters can offer.

The delivery of media via Internet Protocol (IP) will have a benefit to broadcasters in driving new customers to their own OTT services -- such as the BBC's iPlayer -- accessed via the ‘Red Button+’ on connected TVs. Juniper forecasts that data usage will soar on these connected devices, approaching 800,000 Petabytes per year by 2022.

Popular posts from this blog

Digital Transformation Growth Defies Market Volatility

The forward-looking CEO's commitment to ongoing investment in Information Technology (IT) is persistent. Worldwide IT spending is forecast to total $4.4 trillion in 2022 -- that's an increase of 4 percent from 2021, according to the latest worldwide market study by Gartner, Inc.   "This year is proving to be one of the noisiest years on record for CIOs," said John-David Lovelock, vice president at Gartner . Regardless, digital transformation remains a high priority across the globe. Geopolitical disruption, inflation, currency fluctuations, and supply chain challenges are among the many market volatility factors vying for attention, yet contrary to what Gartner saw at the start of 2020, enterprise CIOs are accelerating IT investments in 2022. Digital Transformation Market Development As a result, purchasing and investing preferences will be focused on areas including data analytics, cloud computing, seamless customer experiences, and IT security. Inflation impacts on

IoT Device Management Demand Gains Momentum

More forward-thinking CIOs and CTOs are focused on the adoption of the Internet of Things (IoT). Management challenges are top of mind for those who have already deployed a large number of sensors and associated network edge devices. Device management services are evolving in response to a greater breadth of new device technologies such as edge intelligence and related connectivity solutions, as well as the customer scalability and security of IoT deployments. But forward-looking suppliers are also preparing for a world where 41.3 percent of the connected devices will be using some form of Low Power Wide Area (LPWA) technologies by 2026. IoT Device Management Market Development Since IoT customers increasingly need to manage a larger fleet of connected devices, ABI Research now forecasts that IoT device management services will exceed $36.8 billion in revenues by 2026. Standardization is beginning to play a bigger role in device management services, as more connected devices use LPWA t

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut