As a result of new digital subscription services such as Disney+, Apple TV+, Peacock and others, the over-the-top (OTT) video market is set to surpass $200 billion by 2024 fueled by subscribers and advertising revenue, according to a new report from ABI Research.
These new services combined with aggressive pricing, packaged deals and the expansion of incumbents such as Netflix, Amazon and Hulu will push the market to new heights. Added to this will be demand from China and India as well as expansion to new technologies such as 5G, ABI Research said.
"Cord-cutting is often regarded as a consequence of expanding OTT consumption, but the market dynamics are more complex, particularly when one considers how the pay TV industry has embraced OTT as a complement and value-additive, rather than strict competition,” said Michael Inouye, principal analyst at ABI Research. “Over time, we expect the traditional pay TV offer to continue to evolve and become indistinguishable from a pure OTT package of services.”
ABI Research said more solutions and conversations about bringing content and service together are forthcoming. Yet, while growth rates are slower, the overall market is still expanding. That includes pay TV and OTT bundles and extends to cross-platform advertising, analytics and customer/service management. New technologies such as 5G, smart home and augmented/virtual reality will play larger roles in the OTT market in the future, Inouye said.
To learn more about ABI Research's findings on OTT and digital content, see the new report, called Over the Top (OTT) and Multiscreen Video and Digital Content.