Live-linear OTT video viewing will outpace traditional TV in five years: survey

OTT video
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Viewership hours of live-linear streaming OTT video will surpass those of traditional broadcast TV within the next five years, according to close to 70% of respondents in a survey conducted by Level 3 Communications, Streaming Media and Unisphere Research.

The third annual OTT Video Services Study reports that the OTT industry is booming, with more than a quarter of respondents expecting year-over-year OTT revenue growth to increase as much as 25% from 2016 to 2017, and about half of respondents anticipate growth of anywhere between 30% to 50%. Over the next three years, OTT-related services will account for more than a quarter of their overall business, according to nearly two-thirds of respondents.

In a change from prior years, the 2017 study found bandwidth limitation challenges are giving way to concerns around quality of service and quality of experience.

Other key findings from the survey:

  • Almost 70% of respondents offer OTT services globally or across more than one geographic region, and, accordingly, about half of respondents employ multiple CDNs, up from 40% in 2016.
  • While VR-video garnered notable attention in this year’s study, respondents are focused on both higher frame rates (HFR) and high-dynamic ranges (HDR), with almost half of respondents offering or planning to offer both options. An additional 20% are focusing only on HFR delivery, such as 1080p60, which is often used to smooth out sports content.
  • OTT-provider maturity level affects the type of video content being offered and planned. Less mature providers are most interested in live events and VOD content, while the more mature providers with current OTT service offerings demonstrate more affinity for live-linear OTT, either today or as a planned offering within the next two years.

“This year’s OTT Video Services study reveals clear growth in the OTT marketplace, with survey responses overwhelmingly projecting OTT viewership will exceed traditional broadcast TV viewership by 2020,” said Tim Siglin, contributing editor for Streaming Media Magazine and principal report author. “The maturation of OTT video delivery reflects key changes in the industry, including fewer bandwidth constraints and the important role live-event and live-linear OTT distribution will play as we transition from VOD-only services to those that more closely mimic traditional broadcast delivery.”

The study was based on responses from almost 500 media industry professionals.

You can read the study here.

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