The increasing penetration of smartphones, tablets and high-speed broadband is driving global OTT revenues at an increasing pace, with forecasters expecting it to see a compound annual growth rate (CAGR) of 14.5% through 2026.
Future Market Insights said it expects global revenues for OTT to top $53.2 billion by the end of this year, up from $47.7 billion in 2015. In its OTT Content Market: Global Industry Analysis & Opportunity Assessment, 2016-2026, FMI said OTT – including audio, video, images, and other media – attractive pricing and more content options along with favorable regulations are some other factors propelling the growth of the global OTT content market.
The study forecast that SVOD services, which were valued at $24.4 billion in 2015, and AVOD services ($17.3 billion in 2015) would remain strong through 2026.
The research also showed that the smartphone and tablet device/platform type segment was valued at $19.1 billion in 2015, something it expected to continue to show strength in through the next 10 years.
Regionally, the North America OTT content market accounted for $21.4 billion of revenues in 2015 due to availability of high speed internet connectivity, high penetration of smartphones, high disposable income, and presence of several well-established OTT content providers. APAC, meanwhile, is anticipated to register high Y/Y growth rates throughout the forecast period and this market is projected to be the most attractive market in the global OTT content market in terms of revenue.
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