OTT market to reach €3.4 billion in 2015

sofien72tu

Super VIP
Messages
25,214
OTT market to reach €3.4 billion in 2015
09:50 February 14, 2012 By Robert Briel


The market for OTT video services on the TV will be €3.4 billion in 2015, according to French research institute Idate.

Idate expects the following geographic breakdown of this figure: United States: 40%; Europe: 24% and the rest of the world: 36%

“Hybrid TV is now a reality. The appealing for OTT video content, amplified by the development of connected TV solutions, is further spurring this trend”, said Jacques Bajon, head of distribution video practice at Idate’s DigiWorld Institute. “These developments are attracting the attention of the big Internet companies who will throw themselves into the trend and surely have an impact on the key segments in the video distribution chain.”

According to the research company, hybrid solutions seem to be positioned in one of four ways:

1. Two-way broadcast: The DTT/broadband or satellite/broadband hybrid network is becoming the leading network for distributing packaged on-demand and linear offerings.

2. Cable and IPTV extension: DTT/broadband or satellite/broadband hybrid solutions provide additional coverage to the TV offerings of managed network operators.

3. Competition with cable and IPTV: The DTT/broadband or satellite/broadband hybrid network offers an alternative to cable and IPTV services.

4. Optimisation of wired networks: Hybrid solutions help alleviate congestion on wired networks, which prioritize Internet access quality over the distribution of managed video services. The potential of hybrid TV distribution varies by market:

In the US, the trade-offs made by cable and IPTV operators will determine the direction the hybrid market takes. Satellite may still capitalise on this solution to counter these operators’ triple play offerings.

In Germany, the hybrid TV landscape will primarily depend on how quickly cable migrates to digital and IP. If the current trend plays out, these operators will play a central role along the same lines as their American counterparts. If not, FTA satellite operators will have the trump card.

In France, where IPTV penetration is extremely high, hybrid could take multiple forms, depending on operators’ strategies. The situation could go one of two ways—cooperation between wired and broadcast operators to provide additional coverage or close competition between networks where the full IP migration of the wired operators would go up against hybrid’s vague efforts in the FTA DTT TV segment.

The UK is the most advanced hybrid market today thanks to the broadcast/OTT combination. This trend will continue, and FTA TV operators will reap the rewards.

In Spain, DTT will play a central role. The DTT + OTT combination will dominate, with additional opportunities for wired operators to expand their coverage using the terrestrial network.

Italy is the country with the most potential for gain from hybridisation. The “absence” of two-way TV networks clears the way for partnerships between OTT and broadcast (DTT and satellite) to dominate.
 
Top