Tuesday, 21 April 2015 22:20

OTT TV providers a growing threat to traditional broadcasters Featured

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So-called Over the Top (OTT) TV providers like Netflix and Amazon Prime are expected to generate $31.6 billion by 2019, up from just under $8 billion last year, and posing an increasing competitive threat to traditional broadcasters.

According to a new report from Juniper research, the continued growth in the established markets of West Europe and North America, along with the emergence of key OTT players in the Far East and Asia Pacific, will bring a surge in the uptake of OTT subscriptions over the next four years.

The Juniper research report observes that OTT services are seeing a rapid uptake by consumers who want to view content, “when and where it suits them”.

And, the report argues that traditional broadcasters are facing increased competition as more services go over-the-top of pay TV incumbents, allowing distributors such as Sling TV to provide customers with a cheaper, tailored alternative to cable TV, driving the trend for ‘cord-cutting’.

Juniper says that whilst key players such as Netflix and YouTube have launched 4K (ultra-high definition) services, the adoption of 4K content has been slow so far, but predicts this to change over the next two years.

According to Juniper, Netflix added its 4K offering to its highest priced subscription package last year, showing belief that consumers are willing to pay for higher quality content, while OTT providers are gaining recognition as being the first to supply viewers with content in this new format.

Meanwhile, Juniper says that 4K TVs will continue to become more affordable, accelerating hardware take-up.

Other key findings by Juniper include:

•    Over 84% of OTT subscriptions will be made via connected TVs by 2019

•    IPTV revenues are set to more than double between 2014 and 2019, rewarding Network Operator’s investment in Triple and Quad-Play Services.

The Juniper whitepaper, OTT-A Threat Networks Can’t Shake Off - , is available to download from the Juniper website together with further details of the full research and interactive dataset.

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Peter Dinham

Peter Dinham - retired in 2020. He is a veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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