Global OTT Devices and Services Market 2016-2020
OTT or over-the-top refers to a medium used for delivering diverse media content using the Internet. It is different from video-on-demand where the users need not subscribe to the traditional satellite or cable service such as Comcast and Time Warner Cable. The popularity of OTT services is indirectly affecting the cable companies that prefer to bundle the channel packages and deliver them to the subscribers. It is further affecting their business models where the popular channels are bundled with the less popular channels and are sold at a premium price.
Technavio’s analysts forecast the global OTT devices and services market to grow at a CAGR of 20.6% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global OTT devices and services market for 2016-2020. To calculate the market size, the report considers the sales of OTT services globally.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global OTT Devices and Services Market 2016-2020
Technavio recognizes the following companies as the key players in the global OTT devices and services market: Amazon, Apple, Facebook, Hulu, and Netflix.
Other Prominent Vendors in the market are: Akamai Technologies, Activevideo, CinemaNow, Google, Indieflix, Nimbuzz, Popcornflix, and Roku.
Commenting on the report, an analyst from Technavio’s team said: “Increased adoption of RTB will be a key trend for market growth. RTB is an online ad serving process, which involves an online bidding process allowing marketers, advertising agencies, and media buying agencies to trade display advertising inventory in real time. RTB vendors provide a suitable platform to carry out this auction process. When a customer visits a publisher’s website, it sends a request to the vendor. The vendor sets a floor price for that visitor, and different advertisers are allowed to check the visitor and the floor price and bid accordingly. The winning bid is then selected by the vendor, and the ad of the winning bidder is displayed for the visitor. With an increasing number of consumer metrics available for the vendors to target their audience, RTB can be the tool that can enhance an OTT vendor's subscriber base.”
According to the report, growing production of in-house web series will be a key driver for market growth. In-house web series are widely popular online video content since these series provide new and innovative content that interests consumers. For instance, New Zealand’s official online rural television channel and online video platform, Rural TV launched an in-house web series in 2016, aimed at encouraging the young rural population in the country to opt a career in agriculture.
Further, the report states that one of the major challenges the global OTT vendors face is the low customer retention. An increasing number of vendors are entering the market as investors realize the high-value proposition of OTT technology and its scope in the future, leading to stiff competition and price wars. This is when the consumers assess the QoS (quality of service) and QoE (quality of experience) of the vendors' offerings. The vendors are differentiating their service offerings by providing additional services that are interactive and personalized, without any extra costs. The low switching cost among vendors has created a dynamic customer base, due to which customer retention becomes a big challenge for the vendors.
Amazon, Apple, Facebook, Hulu, Netflix, Akamai Technologies, Activevideo, CinemaNow, Google, Indieflix, Nimbuzz, Popcornflix, Roku.
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