The total over-the-top (OTT) video revenue in Europe was up 51 percent in 2013 reaching $3.2 billion and is expected to grow a further 43 percent this year, according to the latest market study by Strategy Analytics. They predict that the majority of this new growth will occur within the online SVOD and ad-supported video business models.
There’s no denying it – music has gone digital in Denmark. According to recent market data, digital accounted for 82% of total music revenues in the country during the first half of 2014. The key driver of this huge share is streaming services. The format accounted for 63% of music company revenues from recorded music in Denmark.
According to Nielsen’s latest cross platform report the number of homes watching broadcast television (using an antenna) increased from 11.62 million in Q1 2014 to 12.02 million in Q2 2014. Over the last year, the number has increased by over 1 million. Most of that growth is coming from households that also have broadband. What’s the key market driver? Pay-TV has become a high-priced luxury purchase for many Americans.
The high price of cable pay-TV packages in the United States is justified in part by the huge number of channels they include. This model operates under a system where popular channels are bundled with a host of less popular ones. The new alternative is a low-cost on-demand OTT video subscription service, such as Netflix or Hulu.
Streaming media players were added to 6 million American homes over the past year, increasing ownership penetration to 17 percent of U.S. Internet households in the second quarter Q2 of 2014, according to NPD Group.
Streaming media player ownership will increase to 39 percent of U.S. Internet households by 2017.
Compared to sell-thru and rental, subscription is a relatively new business model within the home entertainment sector of Western Europe. But this is not keeping it from dominating consumer home entertainment spending. By 2018, consumer spending will account for 54% of OTT video revenue, of which SVOD will comprise of 74% of the consumer spending category.
Over -the-top (OTT) video services — such as Netflix and Amazon Prime — are keeping their customers much happier than pay-TV subscribers. And, it’s not just the factor of 10 price difference. The study found that 54% of users were very likely to recommend their OTT service to a friend or colleague.