The over the top (OTT) devices and services market is expected to register a CAGR of 16.2% over the forecast period (2020-2025). The wide adoption of OTT applications has led to a wide-ranging dispute between companies that offer similar or overlapping services. The traditional ISPs and telecom companies have had to anticipate challenges related to third-party firms that provide over-the-top applications.
- The growing demand for customized content has lead to large adoption rates of the OTT devices. The user does not need to pay the value of specific content. The customized contents give users the flexibility to view varied.
- Affordable rates of the high-speed internet has lead to huge increase in the adoption rates. WIth the rates of high-speed internet decreasing in the past, users have shifted to OTT due to the improved convenience.
Scope of the Report
An over-the-top (OTT) application is an app or service that avails a product over the Internet and bypasses the traditional distribution practices. Services that are available over the top are most typically related to media and communication and are generally, if not always, lower in cost than the traditional method of delivery.
Key Market Trends
Services is Expected to Hold a Significant Market Share
- Along with providing messaging services, some of OTT apps also provide the functionalities that a broadcast channel provides to its customers. With a large rate of adoption, users broadcast entertaining videos, music, local or international news to a large group of other users. This wide range of applicabilities is accelerating its adopted growth.
- The fast pace of digital disruption that is transforming the TV industry is growing substantially: the rise in IP-delivered TV content is reshaping distribution models, advertising, and consumer viewing habits. Every major TV operator has launched or is planning to launch and scale up their direct-to-consumer streaming offerings.
- Advertisers are following the exponential OTT audience growth, and the industry has made significant strides in the past year with OTT targeting, personalization, measurement, and engagement. With the traditional services providing less mobility and OTT providing better flexibility, consumer preferences are changing rapidly.
Asia-Pacific is Expected to notice a Major Market Growth
- According to a recent framework by the Telecom Regulatory Authority of India (TRAI), the consumers of DTH and cable channels will have to pay a network capacity fee (NCF) of INR 130 ($1.8) and 18% GST atop for up to 100 channels. Further, users opting for more than 100 channels, the NCF will be priced at INR 20 for extra 25 channels. The framework came into effect on February 1, 2019.
- With the adoption of cutting-edge technologies such as artificial intelligence and machine learning, OTT players will gather, analyze, and generate insights from vast volumes of digital data pertaining to user viewing patterns. This will help to create personalized content according to consumer preferences. Such a personalized approach can significantly boost OTT adoption in countries such as India, where entertainment preferences and sensibilities vary between different regions.
- With the advancement in technology occurring in India, the content consumption experience will also face huge priority to improve the consumer experience. Even currently, interactive video-based digital content facilitates a viewer to actively participate in the progression of the narrative, which indeed helps in delivering an immersive experience. OTT platforms are making it possible for viewers to enjoy seamless digital entertainment across multiple media formats, be it through mobile apps or online websites.
With many media and content companies jumping on the streaming TV bandwagon, the marketplace is becoming increasingly fragmented, and it's creating even more competition for high-quality content to keep viewers hooked. The companies are focussing on product innovation in order to gain consumer attention.
- April 2019 - Hulu is exploring new ad experiences for binge watchers, according to Peter Naylor, head of ad sales, as the streaming TV service looks for ways to insert brands into shows without being too intrusive.
- October 2018 - Netflix announced that they are planning to launch a Choose Your Own Adventure-type ending for a show (similar to the type of books popular back in the 80s and 90s). They will be testing this new choose-your-own-ending on the hit show Black Mirror.
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