As more over-the-top (OTT) video is consumed by Americans in their homes, this trend has created a positive upside for certain types of consumer electronics — in particular, streaming media players. Moreover, low-cost on-demand access to video entertainment has disrupted the legacy pay-TV industry.
For the 51 countries covered in the latest worldwide market study by Digital TV Research, the gross number of overall viewers will climb from 5.60 billion in 2010 to 11.32 billion by 2020.
According to GfK, 19 percent of TV viewers now own at least one of the three major digital media players — Roku Stick, Google Chromecast, or Apple TV. This represents a 10-fold increase over the 2010 ownership level of approximately 2 percent.
Netflix has global mind-share, even though it’s officially available in only a handful of countries. The consumer awareness of the subscriber benefits are a testament to the apparent pent-up demand for affordable over-the-top (OTT) streaming video entertainment services.
The phenomenon of cord shaving, or consumers spending less on pay-TV, jumped from 26% last year to 35% in 2014. Now, more than half of consumers under 35 say they spend less on cable than they used to because they use internet video instead. The percentage of consumers who considered cancelling cable service has doubled since 2010 — from 15% to 30%.
via Altman Vilandrie
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.
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.