Netflix helped boost subscription services to nearly 40% of the UK OTT market. The worldwide OTT video market reached nearly US$ 11B in 2013, of whichNetflix is also a significant contributor in the North American and expanding Latin American markets. According to ABI Research’s findings, OTT revenue share will shift to TVOD (transactional video on demand) and advertising as new services emerge.
Part of the driving force for TVOD, and more specifically EST (electronic sell-through), is propelled by the success of UltraViolet, which still has an uncertain future. Senior analyst Michael Inouye commented, “While we still believe UltraViolet can succeed in moving consumers to pure electronic libraries, from our conversations it is clear others are far more pessimistic. UltraViolet continues to experience some growing pains as the fragmented market prevents some of the key benefits UltraViolet touts; however, it still remains the most comprehensive solution to date. If UltraViolet fails to replace physical media this would undoubtedly impact the outlook for EST.”
ABI Research expects EST to grow, but rentals will capture a significant portion of the transactional OTT market. This forecast speaks more to the impact of subscription and advertising based services than the prospects for UltraViolet as an EST platform. Practice Director Sam Rosen added, “The pace of change within the video market has been remarkable. The next wave of disruptive services will be national OTT services from existing Pay TV market participants, as indicated by Verizon’s acquisition of Intel Media and Sony’s cloud TV hopes. As more digital content becomes available, consumer’s perceptions of ownership will change – instead of moving from physical media to electronic purchases (EST), video is looking increasingly like music where consumer’s access owned and subscribed libraries of content via services rather than personally amassing collections.”
These findings are part of ABI Research’s OTT and Multi-screen Services Research Service.
ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.
About ABI Research
ABI Research is a global technology intelligence firm delivering actionable research and strategic guidance to technology leaders, innovators, and decision makers around the world. Our research focuses on the transformative technologies that are dramatically reshaping industries, economies, and workforces today.
ABI Research提供开创性的研究和战略指导,帮助客户了解日新月异的技术。 自1990年以来,我们已与全球数百个领先的技术品牌,尖端公司,具有远见的政府机构以及创新的贸易团体建立了合作关系。 我们帮助客户创造真实的业务成果。
For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.
Americas: +1.516.624.2542
Europe: +44.(0).203.326.0142
Asia: +65 6950.5670