The full impact of OTT is now being felt, with more competition for premium rights, the best content distributed across more platforms and consumers who are willing to self-aggregate their own selection of services.
By Adrian Pennington
Research from market analyst Digital TV Research (DTVR) forecasts strong growth for OTT both as a stand-alone proposition and as part of a broader PayTV offering.
According to DTVR, PayTV revenues (subs and PPV) and OTT revenues (variously AVOD, SVOD, TVOD and DTO) will reach $283 billion by 2022 worldwide. OTT’s contribution to the revenue total will increase from 15% in 2016 to 29% in 2022 with revenues more than doubling over the same period. At the same time, SVOD subscriptions will reach 546 million - half the PayTV total - by 2022.
In terms of top challenges, Media + Networks revealed that for some, the number one issue is how to design a “one product road map across multiple territories”. For others, it is “how to align premium and low-cost services”.
However, regardless of whether you’re a content owner, broadcaster of a cable or satellite PayTV business the rising cost of programming is a major preoccupation.
There is clearly a challenge for broadcasters that are competing with the new platforms, for producers that are not receiving orders from them and for distributors that are locked out of rights exploitation deals. For these companies, the cost of content is inflating rapidly with no obvious way of generating ROI.
The complete Future OTT report covers:
- Content economics
- Content rights
- Free vs paid models