Friday, April 12, 2013
Primary Growth drivers for OTT - Amazon, Hulu & Netflix
The over-the-top video market grew 60% last year to pass US$8 billion, driven by companies like Netflix, Hulu, Apple, and Amazon, according to new figures by ABI Research. The research found that the three largest markets – North America, Europe, and Asia-Pacific – experienced year-on-year growth in excess of 50% in 2012. ABI predicted that as mobile devices like tablets and other connected devices continue to spread, the market will pass US$20 billion by 2015. “The shift to digital and OTT distribution is accelerating, particularly as content providers increasingly warm up to these channels,” said ABI senior analyst Michael Inouye. Subscription Video On Demand (SVOD) services, like Netflix, will continue to dominate the OTT business. But newer business/consumer models will also gain ground. In 2012, ABI says 58% of OTT video revenue came from subscription services. It estimates that subscription's share of the business will drop to less than 32% in five years.