According to a recent report by Juniper Research, subscriptions from ‘over-the-top’ (OTT) TV providers such as Netflix and Amazon Prime will generate $31.6 billion by 2019, up from just under $8 billion in 2014.
The report shows that continued growth in the established markets of West Europe and North America, along with the emergence of key OTT players in the Far East and Asia Pacific, will bring a surge in the uptake of OTT subscriptions over the next four years.
The report showed that OTT services are seeing a rapid uptake by consumers who want to view content, when and where it suits them. The report argued that traditional broadcasters are facing increased competition as more services go over-the-top of pay TV incumbents, allowing distributors such as Sling TV to provide customers with a cheaper, tailored alternative to cable TV, driving the trend for ‘cord-cutting’.
Though Netflix and YouTube have launched 4K (ultra-high definition) services, the adoption of 4K content has been slow thus far. Juniper is predicting this to change over the next 2 years. Netflix added its 4K offering to its highest priced subscription package last year, showing belief that consumers are willing to pay for higher quality content, while OTT providers are gaining recognition as being the first to supply viewers with content in this new format. Meanwhile, 4K TVs will continue to become more affordable, accelerating hardware take-up.
The report also predicted that over 84% of OTT subscriptions will be made via connected TVs by 2019. Also, IPTV revenues are set to more than double between 2014 and 2019, rewarding Network Operator’s investment in Triple and Quad-Play Services.