OTT Expected to Soar to US$10 Bil. by 2018

Campbell, Calif., November 20, 2014—Market research firm Infonetics Research released excerpts from its latest Pay TV Services and Subscribers report, which forecasts and analyzes the cable TV, satellite TV, and telco internet protocol television (IPTV), and over-the-top (OTT) services markets.

“Subscription-based over-the-top (OTT) providers like Netflix, Hulu Plus, and Amazon have seen phenomenal growth over the last couple of years. With a combination of wide availability across end devices, user-friendly interfaces, and access to vast content libraries, these providers continue to challenge traditional pay-TV providers and are in the early stages of siphoning off revenue,” notes Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research.

“But beyond this approach,” continues Heynen, “OTT providers are now expanding their relationships with traditional pay-TV providers to get their apps and services integrated directly onto consumer set-top boxes (STBs), gaining access to a much larger pool of current pay-TV subscribers.”

Highlights of the report include:

  • Over-the-top (OTT) pay-TV revenue is forecast by Infonetics to grow from $5.8 billion in 2014 to just over $10 billion in 2018
  • The global pay-TV market totaled $117 billion in the first half of 2014 (1H14), an increase of 3.9% from the first half of 2013 (1H13)
  • Satellite and telco pay-TV service revenue continues to grow, driven by new subscribers and increased average revenue per user (ARPU) in North America and Western Europe
  • However, much of the increased revenue per user is being offset by ever-increasing content costs
  • Pay-TV subscribers reached 837 million in 1H14, growing 10% over 2013, with the strongest growth again coming from the telco pay-TV segment

 

Infonetics’ biannual pay-TV services and subscribers report provides worldwide and regional market share, market size, forecasts through 2018, analysis, and trends for telco IPTV, analog and digital cable video, and satellite video service revenue, ARPU, and subscribers and OTT revenue and subscribers. Pay-TV providers tracked: AT&T, Beijing Gehua, BCE (Bell Canada), British Sky Broadcasting, Cablevision, CanalSat, Charter, China Telecom, Comcast, Cox, DirecTV, DISH Network, J:COM, Jiangsu Cable, Kabel Deutschland, Netflix, Orange, Shaw, Sky Italia, Tata Sky, Time Warner Cable, UPC Broadband, Verizon, Virgin Media, and many others. To buy the report, contact Infonetics: http://www.infonetics.com/contact.asp.