The ongoing shift to OTT is creating value for companies throughout the video value chain, including pay-TV operators, the report said.
The Over-the-Top (OTT) video market will surpass $200bn by 2024, with 90% of that value fueled by subscription and advertising revenue, according to a new report by global tech market advisory firm, ABI Research.
New services like Disney Plus and Apple TV Plus, coupled with aggressive pricing and packaging, and continued expansion by incumbents are pushing the Subscription Video on Demand (SVOD) market to new heights.
Subscriptions in the Asia-Pacific region have grown significantly, driven by key services in China like Tencent, Youku Tudou/Alibaba Group, and increasing opportunities in India.
Even with over 700m OTT SVOD subscriptions in 2019, the pay-TV market, with over 1bn subscriptions, is still larger. And, while growth rates are slower (and declining in North America), the overall market is still expanding.
The attention paid to low latency video is a testament to how OTT video is growing but also highlights the ongoing opportunities with live/linear programming.
Commenting on the report, Michael Inouye, Principal Analyst at ABI Research, said: “Cord-cutting is often regarded because of expanding OTT consumption, but the market dynamics are more complex. Over time, we expect the traditional pay-TV offer to continue to evolve and become indistinguishable from a pure OTT package of services.”
“Increasingly, we’re seeing more solutions and conversations about bringing content and services together. This includes pay-TV and OTT bundles and extends to cross-platform advertising, analytics, and customer/service management. Ultimately it makes the market more accessible to a wider range of companies and expands the potential video touchpoints, particularly as new technologies like 5G, smart home, and Augmented/Virtual Reality play larger roles,” Inouye added.