The rise in subscriber base due to COVID is not an advantage that will last for long. Life will get back to normalcy as conditions improve. As per the Research & Markets report, while the global OTT streaming market is expected to grow at a CAGR of 55% from $104.11 billion in 2019 to $161.37 billion in 2020, this growth is mainly attributed to the COVID-19 outbreak. The market is expected to stabilize and is estimated to reach $169.4 billion in 2023 growing at a CAGR of 14.0% from 2021.
In our previous post, we discussed the impact of COVID-19 on the global OTT Industry and the various catalysts that have contributed to its phenomenal growth. In this post, we will take a shot at how the growth momentum in the OTT space can be sustained and what OTT platform players can do to keep subscriber churn at bay. The answer lies in adopting technology that can help provide a great customer experience.
"Amid content and marketing, tech is the underdog that ensures a sublime consumer experience." - Ali Hussein, CEO of Eros Now
According to Rob Gallagher, Research Director, Consumer & Entertainment services at Ovum,
“As more viewers watch more content on more devices, spend on content delivery network (CDN) services to deliver video over the open Internet will grow from just under US$11 billion in 2018 to nearly US$16 billion in 2023, according to our latest forecasts. CDNs will also be critical to ensuring streams start fast, play buffer-free, and generally meet consumers’ increasingly high standards as demand scales. The ability to analyze and manage multiple CDNs to deliver the best quality experiences for the best possible costs will be an important strategy for a growing number of TV and video service providers.”
According to Iván Markman, the chief business officer at Verizon Media,
“The lack of live sports is pushing up consumption in other areas on Verizon Media properties, with 54% month-over-month growth in news, 60% increase in gaming and 134% increase in entertainment content”.
It is possible that once the pandemic situation eases, the breakneck speed in which the Media and Entertainment sector is growing may slow down a bit. Possibly, subscription fatigue will pave the way for innovation in OTT monetization with providers looking at the pay-per-view and advertising monetization as viable alternatives to subscription monetization. Bundling of different subscription packages to create channels is a trend that is upcoming now with Disney+ bundling its videos with ESPN, National Geographic etc. Eventually having led an OTT way of life once, consumers will continue to consume content based on their choice of content type, genre, and other options. Viewers can enjoy a seamless viewing experience owing to the flexibility and ease-of-use provided by the OTT video platforms.
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