OTT media delivery tops $51.38 billion

DetailsMichelle Clancy | 15 April 2015

Media delivery services revenue for over-the-top (OTT) services reached $51.38 billion in 2014, research from Visiongain has revealed.

The firm points out that in less than five years, the global OTT media delivery market has dramatically changed the way in which the global population communicates and consumes media; creating a disruptive effect in the operations of all telecommunication providers and the global media industry.

Visiongain expects the factors behind the growth in both revenues and subscribers for this global market to spread to the rest of the global population, motivating a strong growth in the OTT media delivery services in the next five years.

However, not all the submarkets inside the global OTT media delivery industry will grow at the same rate. For example, most important global submarkets are expected to be the video-on-demand (VOD) and gaming submarkets, which are expected to create the large majority of global revenues.

When it comes to geographies, the North American and Asia Pacific regions are expected to obtain the largest share of revenues, and to enjoy the fastest growth due to the specific factors in each of these two regional markets.

Contrastingly, the Latin American and Middle East and Africa (MENA) regions are not expected to produce sizeable revenues or subscriber numbers due to harmful factors such lack of infrastructure, low smartphone penetration and smaller purchasing power.

"The development of this global market has been changing customers' consumption patterns and behaviours; generating large benefits for consumers as they are now enjoying better services at lower costs," the firm explained in its report. "This is why consumers are shifting towards OTT providers, which is leading to decreasing revenues and an increasing need for faster and more reliable data connections."

In response to these global developments, Visiongain expects incumbent operators to struggle at competing directly with OTT providers. This is why telcos are placing pressure on regulators in order to create barriers against OTT providers.