Delivery of media without a multiple system operator is also known as over the top content or OTT. In this service, the provide is aware of the internet protocol packets but has no control over copyrights or viewing capacities of the content. In the recent times, electronic device production has increased at a rapid rate, especially due to the evolution of the very large scale visualization technologies. Services in over the top market (OTT) use internet as the primary medium to provide content or establish communication. Growing use of these services and investments from key media providers in the industry are expected to help the market grow at a healthy growth rate.
Segmentation in OTT Market
The global over the top market is segmented on the basis of the types of applications, which include audio, video and text and images. On the basis of access type, the industry is segmented into set to boxes, smart devices, smart television, gaming consoles, laptops and desktops. On the basis of the demand across various industrial verticals, the OTT industry is segmented into healthcare, BFSI, education, household, media and entertainment, telecom and IT and other industries. Geographically, the market is divided into Middle East and Africa, North America, Europe and Asia Pacific.
Drivers and & Restraints
The global over the top market is strongly driven by increasing penetration of the small devices and broadband connectivity across the world. Cost effectiveness of the OTT services is also a strong driver for the industry. Social adoption and endorsement of these services and positive approach from the emerging markets like Asia Pacific and Latin America are also creating better business opportunities for the key companies in the market. The major restraints for the industry include monetization of the user bases and lagging network performance of the over the top devices. Massive rise in the competition is also expected to create major hindrances in the growth of these services. However, operator partnerships and collaboration with cloud services are expected to create better business opportunities.
According to the experts, the global over the top market is expected to grow at a CAGR of over 16% from 2014 to 2020. At the projected compound annual growth rate the OTT industry is estimated to grow from the current estimated worth of over $25.33 billion (in 2014) to an estimated worth of over $54 billion by the end of the year 2019. Vast adoption across Asia Pacific, Middle East and Africa and Latin America is expected to drive this industry during the forecasting period. The industry is currently estimated to be dominated by the developed regions like North America and Europe.