Premium OTT Market in the US to Reach $21B by 2020, Says Vindicia
Expect robust growth in the U.S premium OTT space to continue for the near future. According to a report from Vindicia, a company that offers enterprise subscription billing services, premium OTT pulled in $16.4 billion in 2017 and that will grow to over $21 billion by 2020. While the big three—Netflix, Amazon, and Hulu—will still be dominant, the report sees strong competition coming from direct-to-consumer services such as Disney and HBO, as well as Crunchyroll and WWE.
Based on executive interviews, the report spells out challenges facing the current OTT market. These include internet speeds in the U.S. that are increasing slowly, managing multiple subscriptions, piracy on premium video, and consumer frustration at not getting the content they want on all platforms.
As the OTT space becomes more crowded, it's a challenge for independent services to break through and market to consumers. “In an increasingly complex OTT landscape, going it alone or promoting a standalone service requires skills or investments. You need to spend a lot to tell consumers what you are and what you provide. You have to inform users all the time why they are coming back to the app," the report quotes one executive as saying.
The full report includes data on Western Europe, Latin America, and Asia Pacific, as well. Download it for free (registration required).
OTT services are growing quickly, but many people still feel tethered to pay TV for access to live sports, news, and events.
Video services are the most popular streaming subscription options around, finds a Vindicia survey. Members would happily pay a little more for perks.