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Over-The-Top Television (OTT)

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Over-The-Top Television (OTT)

Uploaded by

rammanohar22
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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O v e r - T h e - To p Te l e v i s i o n ( O T T )

H o w OT T i s r e v o l u t i o n i z i n g

The Entertainment Landscape


&
T h e F u t u re A h e a d

Rammanohar Das | MBA ITBM | 2019 -21


Section – C | PRN – 19030241134
© 2020, SCIT. All Rights Reserved.
Over-the-top television(OTT)
OT T is used to describe emerging business models such
as OT T apps and devi ces uti l i zi ng
the internet to bypass traditional infrastructure

Provides access to video content via a


high-speed internet connection, bypassing
the traditional cable/broadcast provider
wired connection

© 2020, SCIT. All Rights Reserved.


Key OTT Players

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Key OTT Players

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3 Benefits of OTT

HIGHLY TARGETED CUSTOMER INCREASED


ADVERTISING SEGMENTATION EFFICIENCY

OTT brings the benefits As analog becomes De-bundling, cord-cutting


of programmatic digital, providers can and going OTT allows for
advertising to learn from and connect more efficient content
new mediums with their customers delivery and pricing

© 2020, SCIT. All Rights Reserved.


T h e r e h a v e b e e n 5 sta ge s o f T V r e vo l u t i o n
To d a y w e a r e a t t h e 7 t h o n e :
“a ny w h e r e a n d a ny t i m e ”

1920’s – 1940’s 1990’s – 2000’s 2005 – 2010 2014 – 2020


Invention of the 1st Launch of cable services and Netflix Sony released PlayStation, Rise of OTT Services
TV & commercial Netflix introduced streaming services Cord cutting
broadcasting

01 02 03 04 05 06 07

1960’s – 1980’s 2000’s – 2005 2010 – 2014


Invention of the First video posted on YouTube Rapid increase in no of users
first VCR Launch of Roku owing a DVR
© 2020, SCIT. All Rights Reserved.
China Japan
To contribute 76% of the User penetration to hit
total revenue in 2021 14.23% in 2021
OTT Video
revenues to reach
$18,396 million in 2021

South Korea
OTT Advertising
Average Revenue per User (ARPU) to remain main source of revenue
to reach $66.63 $8745 million by 2021

India USA
Online video advertising Revenue is expected to show annual
to reach US $1 billion by 2021 growth rate of 11.5%

© 2020, SCIT. All Rights Reserved.


GLOBAL OTT MARKET SHARE

A PA C
Europe Fastest-Growing Market
Largest Market
by Region (2018-2023)
by Region (2023)

2017 2023 Market


Market Size Market Size Growth Rate
$43.3 $98.0 (2018 – 2023)
billion billion 14.7%
© 2020, SCIT. All Rights Reserved.
I n d i a ’s OT T M a r ke t i n 2 0 2 2
T h e F u t u r e A h e a d

$ 823 mn Growth at CAGR of Growth in


market size 22.6% compared smartphone users
by 2022 to global OTT to fuel OTT growth,
users to touch
growth of 10.1%
between 859 mn in 2022
2017-2022 from 468 mn
© 2020, SCIT. All Rights Reserved. in 2017
Consolidation: The Big 4

S hare o f OT T vi ewi ng Ho urs

At some point, consumers will hit


subscription fatigue and stop
stacking additional paid services.
The winners are already licensing
beloved existing content and
producing original content.

© 2020, SCIT. All Rights Reserved.


Factors that lead to the rapid

Proliferation & Consumption


of OTT Services
C h a n g i n g d y n a m i c s o f c o n s u m e r ’s re l at i o n s h i p w i t h M e d i a :

Consumers today are choosing OTT over Traditional TV.


Social Media & Entertainment content dominates the
average 20 hours/week of internet usage.

Rise of ‘Cord – Cutting ’


There is a rising trend of people switching from traditional
cable TV to online streaming services such as Netflix,
Amazon Prime, YouTube etc.
Explosion of Content

© 2020, SCIT. All Rights Reserved.


O p p ortu n itie s
&
T h e F u t u r e A h e a d

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O p p o r t u n i t i e s t h at l i e a h e a d

Content Creators Content Distributors


Internet has lowered the entry barriers More monetizing opportunities through
subscriptions

Advertisers
Huge scope for brands to engage with
audience

With the growing competition in the OTT market, co n te n t will be the deciding factor on who will win
the OTT war

A m a z o n P r i m e V i d e o h a s a n n o u n c e d 1 8 o r i g i n a l s h o w s for
the Indian Audience, which has started since 2017
© 2020, SCIT. All Rights Reserved.
Multilingual content will get a boost
L a n g u a g e looms large in determining OTT’s market by market penetration

Netflix has a higher share of domestic productions in non-English speaking markets


such as Germany and France than in English-speaking markets such as the UK and Canada

Inno vati o n wi l l pl ay an i mpo rtant ro l e i n gro wth o f OT T s er vi ce

L i v e s t r e a m i n g , 3 6 0 d e g r e e , V R & A R will redefine the OTT space

Fox TV has already streamed NASCAR, the US Golf Open and the NBA in VR and AR is
already being used to simplify users’ viewing experience

Moving towards a cooperative model

C o o p e r a t i v e m o d e l s emerging between all the partners

Hulu has launched its Live TV streaming services and Apple is now offering Netflix as a
service on its Apple TV platform
© 2020, SCIT. All Rights Reserved.
Capitalizing on Big Data
OTT providers will capitalize on the data with technologies like real-time analytics to provide
advanced customer experience

Viewer data gives Netflix an important information advantage in negotiations with


content owners

Te l e c o m o p e r a t o r s w i l l e v o l v e t o p r o v i d e f a s t e r n e t w o r k s
Video in 4G cellular networks accounted for 89% of total video traffic across all cellular network

Telecom will evolve to provide better video streaming experiences with ultra-
broadband networks, 5G cellular data, cloud computing etc.

© 2020, SCIT. All Rights Reserved.


K E Y TA K E AWAY S

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T H A N K Y O U

© 2020, SCIT. All Rights Reserved.

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