Written by: Roshan Dwivedi
Vindicia, the leader in enterprise-class subscription billing, and Ooyala, a leading video, analytics and advertising technology provider, today released new research identifying the driving forces for over-the-top (OTT) growth in the U.S. Forty-five leading entertainment content and service providers participated in the study offering their predictions and market indicators on the prospects for premium OTT.
“By 2018, the U.S. OTT market will exceed $8 billion in revenue, driven by new market entrants and growing consumer demand”
International research and consultancy firm MTM conducted the study in May and June 2015. Industry participants believe that the U.S. market, driven primarily by Netflix in recent years, will continue to grow strongly during the next few years, as a result of three factors: significant investment, a proliferation of services, and intense competition. Consumer demand for premium OTT platforms is likely to increase, as the range and quality of services improves and as viewing continues to shift towards non-linear services.
“By 2018, the U.S. OTT market will exceed $8 billion in revenue, driven by new market entrants and growing consumer demand,” said Caitlin Spaan, vice president of marketing, Ooyala. “While large MVPDs own large portions of OTT audience today, industry experts predict 15-20 specialist services will grab subscribers’ attention. For these niche providers, there’s tremendous fan-base potential in providing entertainment focused on sports, personal hobbies, kids’ entertainment, indie, specialized film and television, and expatriate or multicultural programming.”
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