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Level3 & Unisphere Research White Paper: What Does the Future Hold for OTT?

http://your.level3.com/LP=4282


What's driving the OTT industry and what are the major challenges that need to be overcome? A new information-packed research paper by Juniper Research (sponsored by Level3) tackled these questions. It's structured as a series of research questions posed to key decision makers in the industry and it covers how they view OTT now and in the future. It does a really good job looking at the impact of new video formats such as 4K.

 

First, the growth of the industry. You all know the basic stats by now: Netflix has 75M subscribers across 200 countries; Amazon has 50M Prime members; Hulu is up to 12 million paid subscribers. But that doesn’t tell the whole story, because it doesn’t show the breadth of the growth. In the latest survey, 45% of respondents said they have an OTT service offering (up from 35% last year). And only one-quarter of respondents said their organizations are part of a larger media conglomerate. That seems about right to me, because most of my OTT RFP clients have been independent, pure-play OTT content shops with no previous broadcasting experience.

 

Next, some interesting factoids:

 

  • Live streaming is expected to grow over the next two years, while VOD is expected to decrease. Linear channels over OTT are expected to be about the same.
  • 84% of respondents believe the business model for live OTT (events, concerts, sports, etc.) is viable. This, despite the high costs of managing live content.
  • The #1 reason for launching an OTT service is to attract new subscribers.
  • 40% of respondents said that more than half of their business will be OTT within 3 years.
  • Quality of experience is the top challenge mentioned for OTT deployment.

 

There are also several charts and good analysis dedicated to advanced video formats (e.g., 4K) and enhanced services (e.g., VR), but you’ll have to read the paper for those insights.

 

I highly recommend it. Click here to download: http://your.level3.com/LP=4282

 

Brian Mahony

CEO, Trender Research

Founder, OTT Executive Summit & Magazine

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