Over-the-top (OTT) pay-TV revenue is forecast to grow from $5.8 billion in 2014 to just over $10 billion in 2018. The global pay-TV market totaled $117 billion in the first half of 2014 (1H14), that’s an increase of 3.9% from the first half of 2013 (1H13). Pay-TV subscribers reached 837 million in 1H14, growing 10% over 2013, with the strongest growth again coming from the telco pay-TV segment.
By 2020, 90 percent of the world’s population who are over 6 years old will have a mobile phone, and many of them will be watching a lot of video on their devices, according to a study. There was a 60% increase in mobile data traffic from 3Q 2013 to the same period in 2014. Meanwhile, voice call traffic stayed flat.
Over-the-top (OTT) video-on-demand (VOD) services were almost imperceptible in Latin America until 2011, when just under half a million subscriptions existed among the most prominent economies in the region. Netflix arrived to the continent in September of that year and brought the OTT video-on-demand VOD market to life. The region is forecast to reach 17.09 million subscriptions to OTT VOD services by 2018.
Consumption of on-demand streaming video continues to grow in American homes, at the expense of broadcast TV viewership. According to the latest market study by Parks Associates, the average U.S. broadband household now watches more than 17 hours of non-linear video per week, compared to 11.5 hours of linear video.
American telcos AT&T and Verizon added nearly a third of a million television subscribers in the third quarter of 2014. Between them they have 11.58 million video customers, up by 1.16 million over twelve months. However, the gains of the two telcos appear to come at the expense of other pay-TV service providers.
“The growing number of high-definition (HD) subscribers as well as major sporting events such as the World Cup 2014 have contributed to improving ARPU,” said Jake Saunders, VP and practice director of core forecasting at ABI Research. As a result, the total pay-TV service provider market is expected to generate over $269 billion by the end of 2014.
While the number of video starts are growing fast to the smartphone, the smaller screen loses out heavily in video finishes. Adobe data shows that video completions are significantly lower for the smaller screen than for the TV or computer. Just 16.6% of videos viewed on a tablet or smartphone are watched to 75% completion. 50% of PC and 35% of game console views reach 75% completion.