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OTT Video in Emerging Markets : Monetization Strategies and 5-Year Revenue Opportunity

94 pages report Published in Feb 2015

Summary

OTT Video in Emerging Markets: Monetization Strategies and 5-Year Revenue Opportunity,” a Research Report by Pyramid Research, analyzes the revenue potential of OTT video services across emerging markets in Africa and the Middle East, Asia Pacific, Central and Eastern Europe, and Latin America, identifying and mapping key OTT video players from local telcos and payTV providers to pure-play OTTs, and best practices for differentiation and OTT video monetization. The report provides 5-year projections for SVoD and TVoD accounts and revenue by region and for key countries including Brazil, China, Mexico, Russia, Saudi Arabia and South Africa. The analysis is built upon in-depth case studies of Netflix Latin America, Clarovideo, OSN Go, iRokoTV, Ivi Russia and LeTV.

Key Findings

  • The growing investment in broadband infrastructure, with the improvement in network speed and performance, has opened up new opportunities to provide video over IP, not only in more advanced, developed economies but also in emerging markets.
  • OTT video is mostly advertising-funded across emerging markets, but paid models are gaining traction within hybrid business models, whereby services offer free content to expand the user base, but at the same time position premium transactional video on demand (TVoD) and subscription video on demand (SVoD) content to generate additional revenue. In recent years, OTT business models entirely relying on advertising revenue streams have become difficult to sustain, given the high cost of content.
  • Across emerging markets, we expect SVoD accounts will increase more than five-fold between 2014 and 2019; the proliferation in China of hybrid models combining AVoD and SVoD will be a major driver for growth. The cumulative paid OTT revenue from SVoD and TVoD services is projected to be as much as US$18.8bn for the 2015-2019 period, over 80% of which will come from the emerging markets in Asia Pacific and Latin America. Among all emerging markets examined, China, Russia, Brazil and Mexico offer the most scale and growth potential over the next five years.
  • The opportunity to position SVoD and TVoD services successfully is stronger for local companies, provided that they have enough funding to invest in attractive content, and that they can deploy sustainable business models for paid content.
  • In spite of the growing importance of mobile, with increasing 4G take up, the bulk of OTT video usage will remain over fixed broadband networks, with WiFi representing a key enabler technology for nomadic usage on secondary screens.
  • In order to reinforce their market position, all pay-TV operators should consider aggregating third-party OTT services within the main service portfolio in addition to standalone OTT propositions.

Synopsis

The “OTT Video in Emerging Markets: Monetization Strategies and 5-Year Revenue Opportunity” report offers an in-depth examination of the OTT video market trends, ecosystems and business models in emerging regions, highlighting unique challenges to such market environments and best practices for effectively positioning OTT video propositions. The report provides demand and revenue forecast for subscription video on demand (SVoD) and transactional video on demand (TVoD) for Africa and the Middle East, Emerging Asia Pacific, Central and Eastern Europe and Latin America. Country-level forecasts are included for key markets including Brazil, China, Mexico, Russia, Saudi Arabia and South Africa.

The report is structured as follows:

  • Section 1: OTT Video Market Trends and Monetization Strategies in Emerging Markets Challenges and opportunities for OTT service providers, positioning strategies for pay-TV operators and effective business models for OTT video provisioning.
  • Section 2: SVoD and TVoD Demand and Revenue Outlook Across Emerging Markets Overview of forecast assumptions and covered countries and regions, review of SVoD accounts and paid OTT video revenue per region.
  • Section 3: OTT Video Opportunity, Competitive Landscape and Keys to Success in Latin America; including region-level market overview and trends as well as deep-dive analysis of the region's largest markets Brazil and Mexico and key players Netflix Latin America and Clarovideo.
  • Section 4: OTT Video Opportunity, Competitive Landscape and Keys to Success in Africa and the Middle East; including region-level market overview and trends as well as deep-dive analysis of Saudi Arabia and South Africa and key players OSN Go and iRokoTV.
  • Section 5: OTT Video Opportunity, Competitive Landscape and Keys to Success in Central and Eastern Europe; including region-level market overview and trends as well as deep-dive analysis of the region's largest market Russia and a key player Ivi Russia.
  • Section 6: OTT Video Opportunity, Competitive Landscape and Keys to Success in Emerging Asia Pacific; including region-level market overview and trends as well as deep-dive analysis of the region's largest market China and a key player LeTV.
  • Section 7: Key Takeaways and Strategic Recommendations for OTT Video Service Providers.

Reasons To Buy

  • The “OTT Video in Emerging Markets: Monetization Strategies and 5-Year Revenue Opportunity” report provides a comprehensive examination the nascent OTT video market opportunity to help executives make informed investment decisions, develop effective partnerships and optimize return on investment.
  • This report provides a five-year forecast of SVoD accounts and SVoD and TVoD revenues by region and for key countries across emerging regions to enable executives effectively position their companies for emerging trends in demand for OTT video and growth opportunities.
  • The report incorporates in-depth overview of key challenges and business model trends in the OTT video market across emerging markets and best practices for monetizing OTT video for stakeholders to develop competitive strategies as well as differentiation.
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