THE RISE AND RISE OF OTT MEDIA
A PERSPECTIVE ON THE ECOSYSTEM AND WHAT LIES AHEAD
Media consumption has changed indelibly over the past decade, with over-the-top (OTT) media services now an established part of the mainstream. The over-the-top (OTT) segment is expected to grow from US$97.4bn in 2017 to US$332.5bn by 2025, an astounding CAGR of 16.7% CAGR. Video services presently make up more than a third of the entire OTT market. There is a bevy of video service providers currently, with Netflix, Amazon, Apple and a host of others such as Disney+ and HBO Max launching soon. The roll-out of 5G services will only further enhance the popularity—and use—of OTT platforms since it will enable consumption of innovative and exciting offerings such as multiplayer cloud gaming and high definition video content, including streaming of live sports enmeshed with mixed-reality experiences.
A key aspect of the next phase of growth for the OTT revolution, especially in emerging markets is payments. A seamless payment system is as critical as high-quality content, and OTT service providers must consider payment options that enable higher client acquisition and retention.
Telecom operators in this space have a distinct advantage, for they can use their infrastructure and customer base as advantages to either offer their OTT partners’ media collections to consumers or to launch their own streaming platforms. They remain constrained with the need for capital-intensive technology required to enable bundling and payments’ delivery on the one hand and low share of the subscription revenue on the other.
The OTT media industry is arguably at an inflection point in many key economies around the world. Those companies that adapt to the changes shaping the market and forge innovative partnerships will continue to thrive, while those that don’t could simply fall by the wayside.