Three reasons for the OTT hype
Hardly a day goes past without a major business announcing the launch of a new streaming product or service. Just last week there were announcements that Roku is preparing an IPO, Amazon is expanding its streaming offer and Facebook’s upgrading its 360 video to 4k capability.
Here are three market forecasts which illustrate why our industry is so exciting and fast growing, and expected to continue in this fashion:
The global over-the-top (OTT) devices and services market is expected to reach $165 billion by 2025 – Grand View Research.
The explosion of smartphone ownership, Video On Demand (VOD), Subscription Video on Demand (SVOD), and internet TV as well as Voice over Internet Protocol (VoIP) are expected to power the continual growth of OTT. And as consumers consume more and more video on the move, expectations for greater quality, quantity and types of content will grow, pushing the industry to innovate and push the boundaries as they compete in an increasingly crowded, and competitive marketplace.
Subscribers to OTT TV will increase from 92.1 million in 2014 to 332.2 million globally by 2019 – Juniper Research.
In the first quarter of 2017, 612,000 pay TV subscribers cut the chord, following the longer term trend for people to move away from traditional monthly linear TV packages, in favour of streaming OTT services like Netflix and Hulu, and IPTV services like Roku. Nielsen, the ratings agency, just announced it will start including Hulu Live TV and Google’s YouTube TV viewing in its TV ratings in the United States, which is a significant indication that they are preparing for an influx of advertising budgets to move to content streamed on laptops and smartphones.
Global mobile internet penetration is expected to grow from 48% in 2016 to 60% in 2020 – GSMA Intelligence.
The GSMA report forecasts: ‘By 2020 we expect it (mobile internet penetration) to be 60%, with smartphones the only access point for many in emerging markets. For an entire generation, the internet is now inextricably linked with mobile and vice versa.’
Elsewhere, IHS Markit predicts Africa, the Middle East and Latin America will be the fastest-growing regions for mobile app spend. With less sophisticated infrastructure, particularly in terms of internet quality, these markets present an excellent opportunity for our Quiptel technology. Q-Flow’s smart routing has the power to improve streaming experiences for millions of users in these regions.