Global OTT content revenues will increase from $47.7 billion in 2015 to $53.2 billion by year-end 2016, according to a new market research report from Future Market Insights.
The roster of market leaders is chock full of big, high-tech brand names, including Akamai, Amazon, Apple, Facebook, Google, IBM, Microsoft and Netflix, as well as others less familiar, such as Limelight Networks and LeEco.
Several factors will fuel growth, including rising broadband penetration, mobile device adoption and subscriptions, introduction of new smartphones and features, attractive pricing and more connectivity and content options. Favorable regulatory developments will also contribute to growth, according to Future Market Insights.
The market researcher divides the OTT content market into use segments: OTT VoIP (local and long distance), video chat/teleconferencing, short messaging, social networking and retailing and OTT music, video and other entertainment services. OTT device and platform types include: computers, gaming consoles, OTT streaming devices, smartphones, tablets, smart TVs and others, such as Blu-ray players.
Global OTT Content Revenues
According to the report:
- The Video content type segment accounted for a relatively high revenue share and was valued at US$ 24.4 Bn in 2015. This segment is expected to remain dominant through 2026
- The ad-based video on demand (AVOD) revenue model segment accounted for a relatively high revenue share and was valued at US$ 17.3 Bn in 2015. This segment is expected to remain dominant through 2026
- The Smartphones and Tablets device / platform type segment accounted for a relatively high revenue share and was valued at US$ 19.1 Bn in 2015. This segment is expected to remain dominant through 2026.
Breaking its 10-year (2016-2026) analysis and forecast out by geographic region, North America accounts for the greatest share of global OTT content market revenues — $21.4 billion as of year-end 2015. Asia-Pacific ex Japan market revenues are forecast to grow fastest over the forecast period.