UK, Ireland OTT market to generate over 500MN in revenues by year end

Joseph O'Halloran | 22-10-2013

The UK and Ireland over-the-top (OTT) TV market will generate 532 million in revenues by the end of 2013, according to a new report by Deadlline Media TV.

In its round of connected TV services in the two countries, the analyst calculates that this figure would represent 4% of all television broadcasting revenues and is on track to rise to 1.6 billion by 2017, around 15% of the total. Fundamentally it suggests that the evidence points strongly to connected TV emerging primarily as a television anytime platform rather that a television anywhere service, particularly as the structure of the television anytime sector is complex and changing.
In keeping with other investigations of OTT services, Deadline Media TV believes that pure-play OTT TV is unlikely to result in significant cord-cutting from mainstream pay-TV platforms. Moreover it does not expect OTT to offer a low pay-TV option targeted at the reported 46% of households who do not subscribe to pay-TV. The analyst says it suspects OTTs primary market is as an alternative to physical disc rental or purchase, a market it says is currently worth 1.5 billion a year.
In addition to assessing the likely prospect of platforms such as YouView and smart TV in general, and denouncing the TV apps arena in the UK and Ireland as a mess, the analyst pinpoints tablets as presenting a big challenge to broadcasters, being devices that cross the boundary between truly mobile technology and in-home use.
Deadline Media TV also adds that apps and standards fragmentation are even more problematically for social TV as they are for connected TV, not helped by key players coming from very different directions. It also sees few prospects for linear scheduled television in the true mobile environment, regarding social TV as existing in the wild west country of connected TV where key online players from outside the British Isles dominate social networking.