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OTT Revenue Grew by 60 Percent in 2012, Says ABI Research

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How big is the over-the-top (OTT) video economy? Try over $8 billion, says ABI Research. As part of the research company's OTT and Multi-Screen Research Service, ABI found that worldwide OTT revenues grew by over 60 percent in 2012. In North America, Europe, and Asia-Pacific -- the largest three OTT markets -- the year-over-year growth was over 50 percent for 2012.

That healthy $8 billion figure is only the beginning, says ABI. By 2015, it estimates that the OTT economy will top the $20 billion mark. It credits the rise of mobile devices, as well as the success of Netflix, Hulu, Apple, and Amazon, for the rapid rise.

OTT revenue comes in different forms in different regions. ABI points out that subscription video services are more popular in North America than in Europe or Asia-Pacific. It predicts that subscription services won't dominate in the future as they do now. In 2012, ABI found that 58 percent of OTT revenue came from subscription video services; by 2018, it expects that number to decline to 32 percent. New forms of digital content distribution will win a greater audience, it says. The future will see a redistribution of wealth in the pay TV value chain, says ABI practice director Sam Rosen.

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