OTT Revenues Up to $20 Billion in 2016

Friday, May 27th, 2011
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Netflix, Hulu, and YouTube Set to Benefit, According to ABI Research

SCOTTSDALE, Ariz. — The number of online video viewers worldwide is expected to eclipse 1.3 billion by 2016, growing from a current 2010 base of just over 780 million. As more consumers look to their broadband connections for content, the Over the Top (OTT) video industry will likewise grow with many companies such as Netflix, Hulu and Apple’s iTunes division aiming to capitalize on this market trend.

Consumers are increasingly engaging with a variety of Internet video services. This rapidly growing ecosystem depends on close cooperation between chipset manufacturers, consumer electronics and set-top box providers, content producers, and service providers worldwide. “Content discovery is just one example of the rapidly changing environment, with traditional program guides being supplemented by search and recommendations,” says Jason Blackwell, practice director at ABI Research.

Netflix is the current leader in OTT revenues, as it has led consumers to embrace long form broadband video on their TVs with support in nearly every Smart TV platform. iTunes and Hulu each represent about 15% of the current Over the Top market. “Over time, more viewing of YouTube and historically Internet-based platforms will shift to the living room, opening up significant advertising revenues. This trend will be accelerated based on YouTube’s recently announced increase in VOD content,” notes senior analyst Sam Rosen.

ABI Research’s “Over the Top (OTT) and Through the Middle (TTM) Video” and “Broadband Video to Connected CE and Mobile Devices” studies provide insight into the rapidly changing world of video services moving to the Internet.

The OTT report outlines strategies for video operators in today’s N-screen and multi-source video world; it provides OTT revenues in North America, Western Europe and Worldwide segmented by various business models.

The Broadband Video report considers the spread of online video viewers/videos and the impact of devices beyond the computer screen (connected CE and mobile). It provides the number of online video viewers, as well as the number of videos viewed by length, segmented by region, as well as penetration rates for consumer electronic (CE) connected TV platforms and mobile devices.

Both reports are included in the firm’s Broadband Research Service, while the OTT report is also part of the TV and Video Research Service.