Parks Associates: 310 Million Households Worldwide Will Have More Than 586 Million OTT Video Service Subscriptions by 2024

Published January 29th, 2019

A new OTT report from Parks Associates predicts OTT services will accelerate their global expansion over the next five years, with more than 310 million connected households having
at least one OTT service by 2024.
OTT Video Services: Disruptive Globalization estimates   approximately 200 million households had at least one OTT service at home at the end of 2018.


“The U.S. leads in adoption of subscription OTT services, but other regions are experiencing significant growth as new services expand across borders,” said Brett Sappington, Senior Research Director, Parks Associates. “Content producers and OTT service providers want to capture audiences, and revenues, worldwide. As a result, Western Europe and other global markets will experience more rapid subscriber growth than North America over the next few years.”

“The US leads in adoption of subscription OTT services, but other regions are experiencing significant growth as new services expand across borders,” said Brett Sappington, senior research director, Parks Associates . “Content producers and OTT service providers want to capture audiences, and revenues, worldwide. As a result, Western Europe and other global markets will experience more rapid subscriber growth than North America over the next few years.”


The report also found that device preferences vary significantly from country to country. While US households prefer smart TVs or streaming-media devices, Canadians more often use game consoles than the Americans, and in Asia, smartphones and mobile-only devices are most prevalent.

“Ultimately, the success or failure of a service relies on the quality of its content library, but small variations in pricing and user experience can cause significant adoption differences across countries,” Sappington said.

“For example, HBO has tested its OTT service with pricing tailored to specific regions, with variances from Spain to the Nordic countries to the US. This level of experimentation will continue in the near term as service providers and content creators continue to test and tweak to find
the right formula for pricing, content and service quality for each region.”


Additional research from the report includes:

* Roku is the streaming media device supporting the most OTT services (66% of all available)
in the U.S.
* Nearly two-thirds of OTT services available in the U.S. are available
in at least one additional market.
* Bollywood’s T-Series YouTube channel has 74 million subscribers.
* 70% of broadband households in the U.S., 64% in Canada,
and 52% in the U.K. have at least one OTT service.

Mobile, OTT explosion drive demand for monetization tech

Research from Frost & Sullivan has revealed that the explosion of OTT and user generated (UG) video content in the current multiscreen environment is creating strong demand for monetization technologies among both content owners and advertisers. The F&S report, Global Online Video Advertising Market, Forecast to 2023, calculates that the targetability, personalization capabilities and interactivity offered by online video advertising solutions will drive the $30 billion market toward $120 billion by 2023. The study also notes that the rapidly expanding viewer pool of live/linear and video-on-demand (VOD) content such as sports and special events has spawned a large market for seamless ad delivery, with elements such as dynamic ad insertion, that is consistent across devices and platforms. It also says that cloud- powered server-side ad insertion will emerge the dominant technology as it meets stringent monetization and user experience demands. “By the end of the forecast period, video ads are forecast to account for more than 20% ofall digital ad spending,” said Aravindh Vanchesan, digital transformation industry analyst at Frost & Sullivan and author of Global Online Video Advertising Market, Forecast to 2023. “Mobile video ad spending, in particular, will account for 75% of digital video ad spend as advertisers, media companies, and publishers follow audiences away from traditional TV and desktop. While ad insertion technologies are finding high uptake among advertisers, ad blockers also are becoming common on both desktop and mobile platforms. This is resulting in lower completion rates and lost revenue opportunities...Besides, as the competition continues to intensify, there will be a need to prioritize market education and awareness initiatives to communicate vendors’ competitive strengths in capabilities.” As the online video advertising market becomes increasingly populated, participants can stay competitive by seizing the growth opportunities presented by: * Offering smooth, scalable, high-quality live video experiences optimized for every device. * Delivering targeted ads to millions of concurrent viewers. * Engaging in merger & acquisition activity with regional, niche vendors, especially for ad tech solutions. * Embedding products and services with personalization and customization capabilities such as user video profiles, recommendations, and localization for device and region. * Ensuring scalability of DAI solutions, particularly for live video events.