The rise in OTT has had a positive domino effect, boosting other elements of the sector right the way down the chain.
The evolution of OTT has been sensational in recent years, with developments and innovations emerging at a rapid rate. As a result of this incredible evolution, the medium has also benefited from a significant level of growth across all nodes in the chain.
To put this level of prosperity into perspective, a study from PwC Global has discovered that OTT is the second fastest growing digital sector within the media & entertainment industry, behind VR and ahead of web advertising, as the chart shows:
Growth for online video platforms (OVPs)
As a result of its increased popularity and consumer demand, this rise in OTT has had a positive domino effect, boosting other elements of the sector right the way down the chain - and OVP is no exception.
Online video is expected to surge into double digits across the globe as a direct result of OTT's success and the mass consumption of web-based content. In fact, a recent study from Technavio suggests that the global online video platform market is will to report a CAGR of more than 18% through 2022.
Growth for OTT services
These strong growth rates are having a positive impact on a host of additional entities operating in the OTT sphere too, with subscription-based services booming more than ever before. And these types of services generated around $20.1 billion in revenue last year alone, according to the PwC Report.
Now, this exponential level of OTT growth will ultimately put pressure on the big players as consumers gain a wealth of choice, both regional and international. As new players enter the arena, it may become more difficult for any singular player to grow their subscriber base rapidly but due to the current (and continued) buoyancy of OTT, new opportunities will present themselves to content providers as services all the way down the chain benefit from front-end success.
The OTT market is growing in its entirety, from the SVoD services through to the analytics platforms, new interfaces, in-app monetization, and the more it continues to thrive, the more exciting innovations we will see.