67 Billion reasons to go OTT
By 2021 video streaming apps will generate 67 billion dollars in revenue, how much of that will be yours?
If you have been on the fence about jumping into the OTT pool, get ready to leap in headfirst.
OTT is consistently touted as the future of video and this year it became the present. In 2016 the OTT market is on track to generate ~25 billion dollars, accounting for 5% of the global video industry. What is most noteworthy is this represents a consistent 20% annual growth for the OTT market compared to traditional Broadcast Television’s paltry 2% growth. Consumers are sending a message that cannot be ignored—they want to control what they watch on the devices they want. Those clear demands can only be delivered by an OTT experience.
A recent estimate from TechSci Research projects the OTT market to exceed 67 Billion dollars annually by 2021. This exponential increase in growth could balloon OTT’s share of the worldwide video industry to nearly 15%. Rapid as its growth may be, OTT is just on the cusp of its potential ascent to distribution dominance. At the moment OTT is limited by its potential reach. SmartTV’s penetration of the market is still very much in its infancy, with only 20% of US households equipped with a connected set. The percent of US homes with a SmartTV however is set to explode very quickly to 50% over the next 3 years. In a very short amount of time, reaching a majority of viewers with apps on connected televisions will not only be possible, it will be preferable.
OTT offers advantages for each party involved that contribute to it’s bright future.
It starts with consumers, who need to deliver the eyes to get the ball rolling for content owners and advertisers. Consumers are already demonstrating their distaste for traditional broadcast television, particularly the highly coveted millennial generation, who are leading the cord cutter movement. The demand for content on the new devices millennials want to engage on, Smartphones, Tablets and SmartTvs, is there and that will bring the content owners.
-Networks and creators are yearning for the freedom and benefits that reaching their fans directly through OTT apps afford. The perks of owning the relationship with their fans and opportunities to further engage them cannot be overderstated. Direct marketing, powerful data, and recommendation engines all can be powered by the right kind of OTT apps.
-For advertisers the unparalleled precision targeting possible on OTT apps means reaching their target market more effectively than on any other medium. This results in sky high CPM’s that stand to make networks and creators billions. If the consumers are there and advertisement friendly content is there, the marketers will do whatever it takes to make sure they are there too.
Now is the time to capitalize:
The chance to lead the OTT charge has not passed. Apple TV for instance was believed to have roughly 100,000 apps as of early 2016. In comparison, the Apple App store for IPhone has over 2,000,000 apps. The OTT waters are still blue for now, as it is early in the game. The mammoth trailblazers (Netflix, HBO, Hulu, Amazon) have been rocking the OTT world for several years, but it is not too late to join the pre-party. The door to get in on OTT at the ground floor is closing fast. There is still room however for networks and content creators to pounce on the early adopter movement and dominate the early world of OTT. Those who rule OTT early will most likely rule OTT late.
Ready to take the leap?
Unreel provides creators, brands, and networks connected OTT apps across all platforms. Our patented streaming platform leverages social data to understand and engage viewers in new ways and deliver rich analytics to content owners. We are currently working with some of the largest networks in the world developing their OTT apps.