\n\tREDWOOD CITY: Premium OTT services are growing at a rapid clip in the U.S., where revenues are expected to increase from $4 billion in 2014 to between $8 billion and $12 billion in 2018, with Netflix remaining the largest single mass-market provider.<\/p>\n
\n\tThis is according to new research from Vindicia, Ooyala and MTM.<\/p>\n
\n\tThere is strong consensus that Netflix will remain the largest single premium OTT provider in the U.S., though its share is expected to fall from 85 percent of the market in 2014 to around 50 percent in 2018, as other providers gain traction. For example, niche services are expected to proliferate, with a forecast of about 15 to 20 specialist OTT providers set to acquire 100,000 or more paying subs by 2018 (and many more attracting a smaller number of subscribers). Areas poised for significant growth are expected to include sports, kids, specialist film and TV (such as foreign drama), expat and ethnic services (e.g., Hispanic) and personality-based offerings (like comedians, politicians, etc.).<\/p>\n
\n\tPrices for premium offerings are set to increase, both from existing providers and new entrants. This is already proving to be true with Netflix’s $11.99 per month family plan and HBO’s $14.99 per month plan.<\/p>\n
\n\tThe research also indicates that broadcasters are responding to the rapid growth of OTT in various ways, seeking to retain control of their content and brands in the premium OTT market and launching services of their own. Similarly, pay-TV providers are pursuing various strategies, bringing OTT offerings onto their platforms and launching new OTT products and services to defend their existing services and capitalize on growing consumer demand.<\/p>\n
\n\t“By 2018, the U.S. OTT market will exceed $8 billion in revenue, driven by new market entrants and growing consumer demand,” said Caitlin Spaan, the VP of marketing at Ooyala. “While large MVPDs own large portions of OTT audience today, industry experts predict 15 to 20 specialist services will grab subscribers’ attention. For these niche providers, there’s tremendous fan-base potential in providing entertainment focused on sports, personal hobbies, kids’ entertainment, indie, specialized film and television, and expatriate or multicultural programming.”<\/p>\n
\n\t“More than 40 percent of U.S. TV households subscribed to at least one premium OTT service at the end of 2014 and our research validates that we’ll continue to see strong growth in the years to come,” added Bryta Schulz, the senior VP of marketing at Vindicia. “Bundling premium content with existing membership subscriptions is just one of the opportunities that will help providers increase revenue and differentiate their product offerings, especially as OTT providers seek access to new customer bases and MVPDs look to court cord cutters and the cord nevers.”<\/p>\n","protected":false},"excerpt":{"rendered":"
REDWOOD CITY: Premium OTT services are growing at a rapid clip in the U.S., where revenues are expected to increase from $4 billion in 2014 to between $8 billion and $12 billion in 2018, with Netflix remaining the largest single mass-market provider. This is according to new research from Vindicia, Ooyala and MTM. There is …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[69],"tags":[],"class_list":["post-6422","post","type-post","status-publish","format-standard","","category-top-stories"],"yoast_head":"\n