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OTT video to overtake TV in five years

Live-linear streaming over-the-top video (OTT) will surpass traditional broadcast TV, a new report by Level 3 Communications, Streaming Media and Unisphere Research says. 

It’s based on a poll that says 70 per cent of respondents agree with the claim. The report, entitled OTT Video Services Study, polled almost 500 media industry professionals. 

More than a quarter of respondents expect OTT year-on-year revenue to grow as much as 25 per cent, while around half expect growth to be anywhere between 30 and 50 per cent. For almost 66 per cent of respondents, OTT-related services will account for more than a quarter of their entire business by 2020. 

Bandwidth limitations are no longer the number one challenge, which is a change from previous years. Now, quality of service and user experience are the biggest concerns. 

Almost seven in ten offer OTT globally. 

VR, even though a tempting technology, is still not in focus. Instead, the respondents are focusing on higher frame rates and high-dynamic ranges. Higher framerate delivery, such as 1080p60 is also in focus, especially when offering sports content. 

“This year’s OTT Video Services study reveals clear growth in the OTT marketplace, with survey responses overwhelmingly projecting OTT viewership will exceed traditional broadcast TV viewership by 2020,” said Tim Siglin, Contributing Editor for Streaming Media Magazine and Principal Report Author. “The maturation of OTT video delivery reflects key changes in the industry, including fewer bandwidth constraints and the important role live-event and live-linear OTT distribution will play as we transition from VOD-only services to those that more closely mimic traditional broadcast delivery.”