The numbers are impressive.
By 2020, Digital TV Research predicts the Over-the-Top (OTT) video market will be worth $55 billion in consumer spending. In the U.S., the average OTT-enabled household already has 1.4 subscriptions to providers such as Netflix and Amazon, and that number is rapidly increasing. In China, eMarketer expects subscription video on demand to increase by a stunning 1,400 percent in the next five years.
Clearly, big things are at stake.
The winners in these markets will reap enormous financial rewards. The also-rans will scratch their heads and mourn what might have been.
What will be the difference between the two?
Three trends will drive success or failure in gaining consumer wallet share:
First, there's the need for quality at scale. Many broadcasters are moving their linear 24/7 channels to OTT delivery and will need partners to fulfill two essential roles: handling enormous volumes of content, and delivering it at the better-than-TV quality that viewers now expect.
Second, providers must solve the complexity of live and linear OTT video. Whether it's for big sporting events or Thursday's prime time line-up, OTT video demands a carefully constructed interplay of people, processes, and technologies.
Third, the winners in OTT will be the ones who most effectively monetize their operations. This means taking advantage of 1:1 advertising opportunities and dynamic ad insertion. Both take providers far beyond the ability of traditional TV advertising to measure and monetize viewership.
Are you an OTT winner right now? Given the alternative, you really should plan to be. Start by learning more about the trends I've outlined here, then seek out partners who can help.
Want to win in the OTT market and increase your profits from digital video? Visit www.akamai.com/ProfitfromDigitalVideo.