Over-the-top content (OTT) is the delivery of audio, video, and other types of media over the Internet without the direct or indirect involvement of a multiple-system operator in the process of control or distribution of the media content. OTT is a promising model for content distribution that takes advantage of current network infrastructure to deliver television and movie programming over the internet, rather than through a traditional cable or satellite connection.
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OTT video is mostly advertising-funded across emerging. However, paid models are gaining momentum within hybrid business models, whereby services offer some portion of content free of cost. The aforementioned initiative helps in expanding the user base, and concurrently position premium transactional video on demand (TVoD) and subscription video on demand (SVoD) content.
OTT video allows providers to reach users of platforms other than the TV, such as users of personal desktop, laptop and smartphones (including Android phones, iPhones, and Windows phones).
There are many studies conducted by industry analysts which tracks the current and future market trends and the growth prospects across different geographical regions. One such report is added by Research Beam titled “OTT Video in Emerging Markets: Monetization Strategies and 5-Year Revenue Opportunity”. The report offers in-depth analysis of the key market drivers, market share, prominent business models and unique challenges faced by top market players.
As mentioned in the report, across emerging markets, SVoD segment would experience tremendous growth of more than five-fold amid the period 2014 and 2019. However, OTT hybrid models combining AVoD and SVoD will offer momentum for growth in China. Out of cumulative paid OTT revenue from the aforementioned segments, emerging markets in Asia Pacific and Latin America will contribute to at least 80%.
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