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Geographic Expansion Propels OTT on CE Devices
Date: 07 November 2011

The use of CE devices in the consumption of OTT video content is increasing rapidly as service providers seek new revenues opportunities, attempt to reach new consumer groups, and look for ways to differentiate their offerings. IMS Research forecasts that in 2016, connected CE devices in the home will account for 27% of all OTT video transactions, up from 6% in 2010. One of the key drivers behind this growth is the geographic expansion of OTT service providers such as Netflix and Amazon.  

Companies effective in establishing partnerships with CE suppliers and increasing global usage of their apps on connected CE devices are quickly becoming leaders in the OTT market. Anna Hunt, author of the recently published study “Over-the-Top Video – Service Delivery & Business Models – 2011 edition,” states, “Netflix’s aggressive pursuit of increasing the geographic reach of its OTT service illustrates to the need for OTT service providers to expand their serviceable target market if they want to grow revenues.” Many domestic markets are quickly becoming flooded with OTT service options. In addition, pay-TV operators are aggressive in addressing the rise of OTT offerings by expanding on-demand portfolios, focusing on original content and offering Internet-based video services. IMS Research forecasts that by the end of 2016, over 133 million TV households worldwide will be accessing OTT content via their pay-TV set-top box. 

Hunt adds, “OTT service providers will need to be flexible with their strategies once they expand into new markets, considering market dynamics such as broadband availability, competition and content licensing.” For example, Netflix library of content in Latin America is quite limited in comparison to its portfolio in the US, yet this market is ripe for growth in digital and OTT entertainment services. Although Internet bandwidth and quality of service limitations are still an issue in many Latin American territories, especially outside major metropolitan areas, penetration of connected CE devices and PCs is growing rapidly. IMS Research forecast a compounded annual growth rate of 88% in OTT transactions via connected in-home CE devices in Latin America from 2011 to 2016. On the other hand, Netflix success in the UK and Ireland will depend heavily on their content portfolio, coming up again established OTT providers such as Amazon’s LOVEFiLM and Tesco’s Blinkbox.

Ends 

For more information please contact:

IMS Research

Anna Hunt – Principal Analyst

T: +1 512 539 0329 Anna.Hunt@imsresearch-usa.com 

Alternative Contacts

Europe

Ann Ruff

ann.ruff@imsresearch.com  Tel: +44 1933 402 255

US

Stacy Hackenberg

stacy.hackenberg@imsresearch-usa.com Tel: +1 512 302 1977

Asia Pacific

Yvonne Zhang

yvonne.zhang@imsresearch-china.com Tel: +86 21 6720 1823

 


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Editors Note :

The study “Over-the-Top Video – Service Delivery & Business Models – 2011 edition” offers detailed analysis of OTT service delivery in 10 countries and 5 regions. Each country is profiled in detail, offering information about the leading OTT service providers across Internet, retail, broadcast and pay-TV segments. The study provides an analysis of important technology and business developments shaping the market, and offers insight into the impact the OTT is having on traditional video delivery platforms.

About IHS Inc. (www.ihs.com)

IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today’s business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS employs more than 5,600 people in more than 30 countries around the world.

About IMS Research:

IMS Research is a leading independent supplier of market research and consultancy to the global electronics industry, offering syndicated market studies, bespoke research and consultancy services. Clients include most of the household names in the industry. IMS Research has offices in Europe, the US, China, Taiwan and South Korea. To find out more, contact IMS Research: enquiries@imsresearch.com; T: +44 (0) 1933 402255; http://imsresearch.com