OTT market to surpass broadcast TV within next five years, Level 3 argues
More hours will be logged watching linear streaming OTT video than traditional television by 2022, according to a new study from Level 3 Communications.
More than two thirds of the almost 500 media professionals polled argued traditional TV’s days will be numbered in five years’ time, while approximately half of respondents believe OTT revenue growth will be between 30% and 50% year over year in 2017.
Roughly 70% of respondents said they offered OTT services globally or across one geographic region, and about 50% of the respondents have multiple content delivery networks, an increase of 40% year over year, the research added.
Respondents are also focused on both higher frame rates (HFR) and high-dynamic ranges (HDR). Half of the respondents are offering or planning to offer the both options and an additional 20% have their focus only on HFR delivery. The research also notes that with maturity level of OTT providers affecting the type of content offered and planned, less mature providers are interested in live events and video-on-demand content, while the more mature providers with current OTT service offerings demonstrate affinity for live-linear OTT, either today or as a planned offering within the next two years.
With over 53% Wi-Fi-connected homes in the US accessing at least one OTT service, Netflix leads the way but challengers are closing the gap. As per comScore, Netflix reached 75% of OTT homes in December 2016, but with a viewership of 53% YouTube had a large OTT footprint. Netflix stands at the second position, in terms of engagement, with average viewing time of 28 hours per home. Amazon Video stands as competitor of Netflix, appearing to be growing through Amazon Prime and the Fire TV platform.