OTT SVOD gets wings amid multiscreen thirst
Michelle Clancy | 06-11-2013
Consumers these days demand a personalised viewing experience and a large variety of video content selection and multiscreen over-the-top (OTT) services are well-suited to fulfil these expectations, says new research from MRG. The research found that such demands are driving the OTT subscription video on demand market to record significant growth worldwide in the coming years. MRG predicts that the market will reach nearly $8 billion on more than 120 million subscribers globally by 2017, the firm said, spurred on by the ever-increasing penetration of smart TVs, smartphones, tablets and other connected devices worldwide. North America is the most developed market for OTT SVOD services and highly competitive, with more than 25 OTT SVOD service providers as of 2013. OTT SVOD subscriptions are estimated to have increased by more than 50% in 2012, reaching nearly 50 million. North America is followed by Western Europe. In 2012, Western Europe accounted for 11% of the worldwide OTT SVOD market with 7 million subscriptions and annual revenue of $575 million. The emerging OTT SVOD service markets in Latin America, Asia and Eastern Europe collectively comprised 20% of worldwide OTT SVOD subscriptions in 2012 and represent solid opportunities, according to MRG. These regions are expected to record immense growth in the next five years, increasing their overall share significantly. Asia, with the largest Internet population in the world, accounted for just 5 million OTT SVOD subscriptions in 2012 and $255 million in revenue. While potential for SVOD in this region is enormous, the market is generally very price-sensitive, making ad-supported models more attractive in some cases, MRG explained. In 2012, Eastern Europe comprised 7% of the worldwide OTT SVOD market with more than 4 million subscribers and revenue of $253 million. Eastern Europe consists of more domestic players as compared to international ones, owing to high demand for home-grown content. In 2012, the Middle East and Africa had a negligible share in the worldwide OTT SVOD market. Though the market is expected to grow in the coming years, its contribution to the worldwide OTT SVOD subscriptions will merely increase to 1% by 2017.