Global over-the-top (OTT) video revenue, or video over the internet, grew 60% annually in 2012, and totaled more than $ 8 billion, according to ABI Research.
The expectation is that services like Netflix, Hulu and Netmovies will exceed US $ 20 billion in 2015, and that subscriptions will no longer be responsible for companies’ revenue. The company predicts that, as of 2018, 68% of the turnover of services will come from the occasional rental of content.
In North America, Europe and Asia-Pacific regions – the three largest markets for OTT video – revenue growth last year exceeded 50%. But business models vary. In North America, for example, the signature is the most popular. In 2012, about 58% of OTT video revenues came from monthly subscription.
ABI director Sam Rosen assesses that the pay-TV sector still has great strength and value, but points out that the factors that will drive a change in the way users consume content are already clear.
Video Netflix Hulu revenues