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It’s not over the top anymore

Ott revenue in emerging markets to double in five years
When it comes to over-the-top (OTT) video, it has grown not only in developed regions but also in emerging markets, both as an alternative and complement to established free-to-air (FTA) and pay-TV platforms. As a result, Pyramid Research said that it expects paid OTT revenue in emerging markets to expand from $1.9 billion in 2014 to $6 billion in 2019. Overall, subscription video on demand (SVoD) services such as Netflix were available to 1.3 percent of emerging market households in 2014, with a user base of 19.4 million. This number is expected to grow to 6.4 percent by the end of 2019, increasing the user base to 102.7 million.“In many emerging markets, we are witnessing the emergence of hybrid models, whereby services offer free content to expand the user base, but at the same time position premium SVoD and transactional video on demand (TVoD) services to generate additional revenue,” said Daniele Tricarico, senior analyst at Pyramid Research. Emerging Asia Pacific and Latin America accounted for 90 percent of paid OTT revenue in emerging markets in 2014, with Latin America being the only emerging market region where Netflix operates. The two regions will only drop marginal shares in the next five years, still making up 86 percent of the total in 2019.

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