We are now living the second generation of OTT, with the next being one of future disruptors.
This second generation, said Andrea Ruberta, pre-sales manager Accenture Digital, is dominated by Netflix 2.0, broadcasters’ standalone OTT (such as Sky’s Now TV) and MCN, with the number of IP devices now standing at over 12 billion (2014).
Meanwhile, the future disrupters stage will be dominated by social media video, CPE and device manufacturers going direct to consumers, new fibre players and super platforms. By then (2018), the number of IP devices will have risen to 20.6 billion.
Commenting on key market trends in the pay-TV sector, Ruberta said that although the market is growing there are many regional variations. The main message is that there’s a need to innovate the core TV product to improve ARPU and meet the threat of online head-on.
Ruberta also said that multiscreen OTT services are one of the key growth drivers as video anywhere increasingly becomes the key proposition to gain consumer spend.
The OTT market will be worth $32.438 million in 2018, with CAGR of 26%, compared to cable with $121.440 million, but with a CAGR of only 5%.