Wednesday, 13 December 2017 22:45

OTT TV revenues to surge towards $120 billion by 2022

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The terrific televisual boom that is the OTT revolution is set to get even more entertainingly profitable, set to nearly double from 2017 levels.

The latest data from analytical gurus at Juniper Research has found that "SVOD (Subscription Video on Demand) services, provided by the likes of Netflix and Amazon, will drive a surge in OTT revenues to reach $120 billion in 2022, up from $64 billion in 2017."

The research also found that "over a quarter of global households will subscribe to SVOD services by 2022."

What this has led to, and will continue leading to, is OTT providers spending big on content.

The details are contact in Juniper's newest report, on sale to relevant parties at relevant prices, dubbed "Digital TV & Video: Network and OTT Strategies 2017-2022," which found that "expenditure by OTTs on original content was increasing."

Juniper estimates that Netflix "will spend over $6 billion during 2017-18, in contrast to the publicly funded BBC, which is investing a comparatively small sum of $1.4 billion."

We're told that SVOD players including Netflix are "seeking to out-spend traditional providers; attempting to deliver original content and reduce reliance on expensive back-catalogues."

Research author Lauren Foye explained: “Success will hinge on whether these providers can continue to produce hits such as ‘Stranger Things’. As consumers become more fluid in their uptake and loyalty to video services, OTTs could just as easily see users switch off.”

In addition, Juniper finds that OTTs "will make a push for sporting rights, with Amazon likely to bid for rights to the Premier League in February 2018," while the research argued that "with such content owned by OTTs & traditional providers, consumers will be torn ever more; faced with multiple subscriptions."

So, what about local content, which Juniper says is "a bastion for broadcasters"?

Well, here we learn that the research "identified that traditional broadcasters hold advantage over OTTs in provision of local content. Some regional OTT services have launched, such as iFlix, but these do not provide the same granular level of local coverage that broadcasters can offer."

And, "the delivery of media via IP (Internet Protocol) will have a benefit to broadcasters in driving consumers to their own OTT services, such as the BBC’s iPlayer - accessed via the ‘Red Button+’ on connected TVs."

Indeed, Juniper forecasts data usage to soar on these devices, approaching "800,000 Petabytes per annum by 2022."

To tempt relevant parties into purchasing the full research, you can check out Juniper's free whitepaper: OTTs vs TV Networks ~ 3 Winning Strategies.

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Alex Zaharov-Reutt

Alex Zaharov-Reutt is iTWire's Technology Editor is one of Australia’s best-known technology journalists and consumer tech experts, Alex has appeared in his capacity as technology expert on all of Australia’s free-to-air and pay TV networks on all the major news and current affairs programs, on commercial and public radio, and technology, lifestyle and reality TV shows. Visit Alex at Twitter here.

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