OTT revenue to touch $32 billion by 2017 from $8.2 billion this year, rentals will surpass subscription revenues

Telecom Lead Asia: Over-the-top (OTT) revenue is expected to touch $32 billion by 2017 from the expected $8.2 billion in 2012.

Subscription services, like Netflix, have led the OTT markets in the past couple of years. By 2014, OTT rentals will surpass subscription revenues.

ABI Research Practice director Sam Rosen said: “Connected CE and mobile devices continue to push consumer behavior towards newer forms of media distribution like OTT and multiscreen services. Pay TV services will continue to thrive, by implementing multiscreen services and supporting OTT content. In the end we expect an amalgamation of services that complement each other for many consumers.”

Advertising, like OTT rentals, is expected to pick up momentum as ad dollars increasingly shift to the OTT market. Connected CE and mobile/portable devices present additional consumer touchpoints and enable creative ways to connect with consumers. These devices capture more of user’s attention as consumers claim to multitask while watching TV.

ABI Research suggests that finding new ways to better engage consumers through OTT experiences, therefore, will prove increasingly important as consumers adopt new viewing behaviors.

Recently, reported that Asian OTT service players — Tencent and NHN — plan to target large social messaging markets, including the US. In September 2012, Tencent’s Wechat (called Weixin in China) had a user base of over 200 million users, while NHN’s Line had over 60 million users.

Ovum also said the lost cumulative revenues due to OTT VoIP for telecoms will be $479 billion by 2020. This will be 6.9 percent of cumulative total voice revenues.

Ovum, in a latest research report, has warned that OTT VoIP will cost the global telecoms industry $479 billion in lost cumulative revenues by 2020, which represents 6.9 percent of cumulative total voice revenues.

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