AS INTERNET-ENABLED TV devices such as smart TVs, connected Blu-Ray players, game consoles, and streaming media players continue to grow their footprint within consumers’ homes, the revenue for online video-on-demand (VOD) and electronic-sell-through (EST) is expected to double by 2015, according to new research from NPD In-Stat.
OTT Video: Content, Devices, Retial and Pay-TV Collide examines the current over-the-top (OTT) video market, quantifying consumer usage of on-line services, as well as content and devices.
“OTT video is continuing to grow, overcoming the barriers of low device connect rates and cumbersome user interfaces,” said research director Keith Nissen, in the report’s news release. “Even stronger growth of I-VOD and EST video services is possible if device manufacturers and digital retailers can put together a simpler, plug-n-play solution for getting on-line video to the TV (web-to-TV). The proliferation of tablets is also contributing to OTT growth.”
The report also identifies some of the other factors affecting the OTT video market:
– Streaming video transactions reached just under 1 billion in 2010;
– Netflix and other S-VOD suppliers are shifting to a more TV-centric model and will soon be competing directly with HBO, Showtime, and Starz; and
– The collaborative and competitive models among physical and digital retailers, content owners, and pay TV operators are shifting rapidly as players in the ecosystem grapple with the evolving mix of physical versus digital channels, EST, pay-TV, OTT, and subscription VOD.
