Arizona – ABI Research announced in its latest OTT and Multi-screen Services Research Service that the OTT video market has crossed the US$8 billion mark in 2012, with companies such as Netflix, Hulu, Apple and Amazon driving the growth. The three largest markets—North America, Europe, and Asia-Pacific—experienced year-on-year growth in excess of 50% in the same year. The report states that the continued spread of connected consumer electronics and mobile devices such as tablets are expected to push the market past US$20 billion by 2015.
The dynamics around revenue generation, ABI Research adds, will continue to change and currently vary by region. However, the agency expects a greater diffusion of revenue across the various business models, driven by a continual shift in consumer demand towards newer forms of digital content distribution.
“The shift to digital and OTT distribution is accelerating, particularly as content providers increasingly warm up to these channels,” comments senior analyst, Michael Inouye. “While pay-TV services are still afforded many advantages, we are approaching the proverbial fork in the road when content owners will decide if they continue down the same path or forge ahead, shaking up the primary means of media distribution as we’ve known it.”
“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,” adds practice director, Sam Rosen. “Whether it’s Netflix expanding to International markets or ABC and CBS 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 future. 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 value chain.”