A new report from ABI Research indicates that OTT video revenues will exceed $200 billion worldwide by 2024, with 90 percent of that total coming from SVOD and AVOD.
Key factors in the growth of the segment include new competitors, continued expansion by incumbents, gains in China and increasing opportunities in India. 5G and other new technologies will further drive the OTT market, ABI Research says.
“Cord-cutting is often regarded as a consequence of expanding OTT consumption, but the market dynamics are more complex, particularly when one considers how the pay-TV industry has embraced OTT as a complement and value-additive, rather than strict competition,” commented Michael Inouye, principal analyst at ABI Research. “Over time, we expect the traditional pay-TV offer to continue to evolve and become indistinguishable from a pure OTT package of services.”
As of 2019, the base of OTT subs worldwide (700 million) is still smaller than the global pay-TV base (over 1 billion), ABI notes. Opportunities remain in live/linear programming, ABI adds.
“Increasingly, we’re seeing more solutions and conversations about bringing content and services together,” added Inouye. “This includes pay-TV and OTT bundles and extends to cross-platform advertising, analytics, and customer/service management. Ultimately it makes the market more accessible to a wider range of companies and expands the potential video touchpoints, particularly as new technologies like 5G, smart home, and augmented/virtual reality play larger roles.”
These findings are from ABI Research’s OTT and Multiscreen Video and Digital Content market data report.