From IPTV to OTT : Consumer demands

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Category: Press Release

Published on Tuesday, 20 December 2011 11:43

Written by Super User

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Revenue from global OTT services are estimated at US$ 1.9bn in 2010, according to IMS Research, with an expected average compounded annual growth rate of 32% through 2016, eventually reaching US$ 16.4bn. IMS Research projects that retailers will grow their share of the OTT market, accounting for 13% of world OTT service revenues in 2016. The market landscape for video content is diversifying rapidly and will only become more complex in the future.

Service providers are watching the emergence of online video, once relegated to the web browser and personal computer, slowly make its way to the world they once dominated, the living room, via smartphones, tablets, gaming consoles, and connected TVs and set-top-boxes. The fear of subscriber loss and “cord cutting” has spurred IPTV providers to examine how they can reduce churn and appeal to young subscribers with multiscreen “TV Everywhere” initiatives.

While consumers are demanding anytime/anywhere content, the challenge for service providers is to match this hunger with competitive content offerings while ensuring profitability. This is no small task.

The dynamics of a multiscreen strategy have shown that it can be a way of reducing churn in its first three to four years of deployment, and then transition into a driver for growth through connecting devices like tablet PCs or game consoles, which help to win new customers from a younger demographic. In this way multiscreen strategies can initially be defensive, but then become an aggressive way of gaining new customers and realising market opportunity. 

source by http://www.iptv-news.com

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