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Tag: Global OTT

  • Global OTT rev to touch $83 bn by ’22, India could improve ranking: Study

    Global OTT rev to touch $83 bn by ’22, India could improve ranking: Study

    NEW DELHI: A global study projects that OTT TV episode and movie revenues would touch $ 83 billion by 2022, more than double the $ 37 billion recorded in 2016  with India expected to clock $ 1.5 billion by then, which will help it go up the pecking order that is presently led by the US.

    The US will remain the dominant territory for online TV and video revenues by some distance, though the its share of the global market will fall from 51 per cent in 2016 to 40 per cent in 2022, The Global OTT TV & Video Forecasts report stated, adding contributing half the Asia Pacific total, China will add a further $7.6 billion with its total revenues reaching $12 billion in 2022.

    Digital TV Research principal analyst Simon Murray told Indiantelevision.com via an email exchange, “We estimate that OTT revenues reached $246 million in India in 2016. We forecast that this figure will be $1501 million by 2022.”

    Pointing out that India’s OTT revenue growth will be “pretty impressive”, Murray said India is also likely to improve its ranking from No. 18 in 2016 to No. 11 by 2022. The present report studied OTT trends in 138 countries.

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    Interestingly, Asia-based research firm Media Partners Asia (MPA) few months back estimated the Indian online video industry generated approximately US$ 230 million in total sales in 2016, and is on course to reach approximately US$340 million in 2017. MPA projected a 35 percent CAGR to 2022 as total industry sales top US$1.6 billion.

    Meanwhile, the Digital TV Research, released recently, went on to add global SVOD (subscription video on-demand) became the largest OTT revenue source in 2013. It will generate half of the OTT revenues by 2022. SVOD will add $24 billion in revenues between 2016 and 2022, with AVOD up by $17 billion. AVOD will total $29 billion by 2022; up from $12 billion in 2016.

    According to Murray, “OTT revenues will exceed $1 billion in 14 countries by 2022; double the count at end-2017. The top five nations will command two-thirds of global revenues.”

     

  • Global OTT may expand at 14.5 per cent CAGR

    Global OTT may expand at 14.5 per cent CAGR

    MUMBAI: Over-the-top (OTT) content is the delivery of audio, video, images, and other media over the internet and bypasses traditional content distribution services. OTT services are mostly related to communication and media and are generally lower in cost than the traditional method of content delivery. OTT content, applications, and services are increasingly being adopted in all segments of commerce and society and are affecting and disrupting traditional industries at a significant pace.

    Consumers use online video instead of traditional television; online communications platforms instead of traditional telephone services; and today are able to download films and music that were once provided only on physical media. Additionally, the process of advertising and searching for services is increasingly moving to these online platforms. This has led to an exponential market growth globally. The global OTT content market is estimated to be valued at US$ 53.2 Bn by the end of 2016 and is expected to register a CAGR of 14.5% during the forecast period (2016–2026).

    Top OTT content market players are developing innovative marketing and distribution channels to enter and rule untapped markets. Some of the top companies operating in the global OTT content market include Akamai Technologies, Amazon.com Inc., Apple Inc., Facebook Inc., Google Inc., IBM, LeEco, Limelight Networks, Microsoft Corporation, and Netflix Inc. Several Indian companies have also entered the OTT content market in a big way. Some of the Indian OTT content market players include Star India Pvt. Ltd., Zee Entertainment Enterprises Ltd., Spuul, Eros International Plc., and Viacom 18 Media Pvt. Ltd, according to a PRNewswire release.

    Penetration of high speed broadband

    Growth in the penetration of high speed broadband, increasing mobile subscriptions and adoption of mobile connected devices, new features and advanced capabilities in smartphones, attractive pricing, and more content options are some of the major drivers fuelling the growth of the global OTT content market. Also, a shift in viewer preferences from the television format to a more customised, anytime, anywhere content viewing format is also boosting the growth of the global OTT content market.

    However this growth is hampered by factors such as online piracy activities, low bandwidth in emerging countries, lack of offline content availability, and technical challenges faced during OTT content delivery.

    Video content

    Video content type segment projected to be the most attractive segment over the forecast period. In terms of revenue, the video segment is anticipated to register a relatively higher CAGR of 15.8% between 2016 and 2026. This growth is attributed to extensive growth of high speed broadband infrastructure in emerging economies and popularity of subscription-based models in developed economies. This segment is expected to register high Y-o-Y growth rates throughout the forecast period.

    TVOD revenue model segment expected to register high Y-o-Y growth rates throughout the forecast period. The TVOD segment is estimated to register a CAGR of 15.8% during the forecast period. The AVOD segment is expected to witness significant revenue growth due to its ease of use; personalized, modern interface; and better viewing experience of AVOD services.

    Smartphones and Tablets

    Smartphones and Tablets device / platform type segment projected to be the most attractive segment over the forecast period. The smartphones and tablets segment accounted for a relatively high market value share in 2015 and this segment is anticipated to remain dominant through 2026. The dominance of the smartphones and tablets segment is attributed to increasing consumer preference towards these devices for availing OTT services such as video and audio streaming, social networking, and texting. The Smart TVs segment is expected to register high Y-o-Y growth rates throughout the forecast period and is anticipated to register a CAGR of 18.7% between 2016 and 2026.

    APEJ and Latin America

    APEJ and Latin America expected to be the fastest growing markets over 2016–2026. The APEJ OTT content market is projected to be the most attractive regional market in the global OTT content market and is anticipated to witness a CAGR of 24.6% over the forecast period. The market in North America accounted for a relatively high value share in 2015.

  • Global OTT may expand at 14.5 per cent CAGR

    Global OTT may expand at 14.5 per cent CAGR

    MUMBAI: Over-the-top (OTT) content is the delivery of audio, video, images, and other media over the internet and bypasses traditional content distribution services. OTT services are mostly related to communication and media and are generally lower in cost than the traditional method of content delivery. OTT content, applications, and services are increasingly being adopted in all segments of commerce and society and are affecting and disrupting traditional industries at a significant pace.

    Consumers use online video instead of traditional television; online communications platforms instead of traditional telephone services; and today are able to download films and music that were once provided only on physical media. Additionally, the process of advertising and searching for services is increasingly moving to these online platforms. This has led to an exponential market growth globally. The global OTT content market is estimated to be valued at US$ 53.2 Bn by the end of 2016 and is expected to register a CAGR of 14.5% during the forecast period (2016–2026).

    Top OTT content market players are developing innovative marketing and distribution channels to enter and rule untapped markets. Some of the top companies operating in the global OTT content market include Akamai Technologies, Amazon.com Inc., Apple Inc., Facebook Inc., Google Inc., IBM, LeEco, Limelight Networks, Microsoft Corporation, and Netflix Inc. Several Indian companies have also entered the OTT content market in a big way. Some of the Indian OTT content market players include Star India Pvt. Ltd., Zee Entertainment Enterprises Ltd., Spuul, Eros International Plc., and Viacom 18 Media Pvt. Ltd, according to a PRNewswire release.

    Penetration of high speed broadband

    Growth in the penetration of high speed broadband, increasing mobile subscriptions and adoption of mobile connected devices, new features and advanced capabilities in smartphones, attractive pricing, and more content options are some of the major drivers fuelling the growth of the global OTT content market. Also, a shift in viewer preferences from the television format to a more customised, anytime, anywhere content viewing format is also boosting the growth of the global OTT content market.

    However this growth is hampered by factors such as online piracy activities, low bandwidth in emerging countries, lack of offline content availability, and technical challenges faced during OTT content delivery.

    Video content

    Video content type segment projected to be the most attractive segment over the forecast period. In terms of revenue, the video segment is anticipated to register a relatively higher CAGR of 15.8% between 2016 and 2026. This growth is attributed to extensive growth of high speed broadband infrastructure in emerging economies and popularity of subscription-based models in developed economies. This segment is expected to register high Y-o-Y growth rates throughout the forecast period.

    TVOD revenue model segment expected to register high Y-o-Y growth rates throughout the forecast period. The TVOD segment is estimated to register a CAGR of 15.8% during the forecast period. The AVOD segment is expected to witness significant revenue growth due to its ease of use; personalized, modern interface; and better viewing experience of AVOD services.

    Smartphones and Tablets

    Smartphones and Tablets device / platform type segment projected to be the most attractive segment over the forecast period. The smartphones and tablets segment accounted for a relatively high market value share in 2015 and this segment is anticipated to remain dominant through 2026. The dominance of the smartphones and tablets segment is attributed to increasing consumer preference towards these devices for availing OTT services such as video and audio streaming, social networking, and texting. The Smart TVs segment is expected to register high Y-o-Y growth rates throughout the forecast period and is anticipated to register a CAGR of 18.7% between 2016 and 2026.

    APEJ and Latin America

    APEJ and Latin America expected to be the fastest growing markets over 2016–2026. The APEJ OTT content market is projected to be the most attractive regional market in the global OTT content market and is anticipated to witness a CAGR of 24.6% over the forecast period. The market in North America accounted for a relatively high value share in 2015.

  • HOOQ India’s new MD Salil Kapoor bets big on glocal strategy

    HOOQ India’s new MD Salil Kapoor bets big on glocal strategy

    MUMBAI: Global OTT player HOOQ, which forayed into India earlier this year, has made its first big move forward. The platform has roped in industry veteran Salil Kapoor as managing director to handle its India operations.

    At a time when Indian companies are also firming up with the OTT strategy and keeping the impeding launch of Netflix in the Indian market, Kapoor’s appointment may well be a strategic move to tackle the competitive scenario. Kapoor, who is betting big on glocal content as the way forward for HOOQ, tells Indiantelevision.com, “My primarily role will be to establish the India operations. We will set up a new team and after we have achieved targets set for the Indian market, we will foray into neighbouring countries.”

    HOOQ follows a subscription based video on demand (SVOD) revenue model and has recently inked content deals with the likes of Sun TV and Saregama India, which includes content in South Indian languages of Tamil, Telugu, Malayalam and Kannada as well as Hindi.

    “We will be looking at many other such partnerships, our end goal is to create a strong portfolio comprising Bollywood, Hollywood and regional content for our subscribers,” asserts Kapoor.  

    Moreover, the platform will not just be limiting itself to acquisitions, but will also looking at creating original content.

    Reliance Jio, with the employee launch of its 4G services, has rejuvenated the entire OTT fraternity. Bandwidth has been a teething issue for the sector and Reliance Jio Infocomm’s 4G services has raised the hopes of one and all. “What Reliance Jio is doing is great indeed. But it will have a holistic impact. Now other telecom players will also do something or the other and at the end of the day, data price will go down. So I think good days are ahead when it comes to bandwidth,” says Kapoor.

    The freemium revenue model is something that experts are talking about aggressively in the Indian scenario. In the freemium model, premium content is put on a subscription model, while old content can be accessed for free. At this stage, HOOQ is not looking to change its strategy. “We follow the SVOD model and at this stage we are not looking to deviate from it. It’s my second day in office and with time there will be many more developments,” adds Kapoor.

    All major broadcasters now have their own OTT platforms. Star India has Hotstar, which follows an AVOD model, while ZEE’s DittoTV is a subscription based platform. Viacom18 is yet to disclose the revenue model of its platform VOOT. On the other hand, while Sony Pictures Networks’ Sony LIV follows the freemium model, during the FIFA World Cup matches, it offered all the matches for a subscription. Earlier this year, Eros International’s ErosNow also unveiled aggressive and ambitious plans for original content on its platform. Apart from broadcasters, Ronnie Screwvala, in association with Ajay Chacko and B Saikumar, has also launched an OTT platform called Arre and has a comprehensive plans drawn out for it. In a competitive scenario like this, it remains to be seen how HOOQ manages to create a niche for itself.