The OTT segment will grow by 13.8% by 2023, predicts PwC. In 2018, the global market for OTT video reached $38.2 billion, it is Expected that in 2023 this figure will increase to $72.8 bn

Monetization segment of OTT-services are in three main business models:

AVoD (Advertising Video on Demand) — involves making a profit from advertising.

SVoD (Subscription Video on Demand) model based on revenue from user subscriptions.

TVoD (Тransactional Video on Demand) — payment for viewing specific content.

Each approach has its advantages and disadvantages. Advertising model (AVoD) allows you to attract more users due to the lack of fees, but revenue from advertising in most cases do not cover the cost of creating or purchasing content. The model based on user charges (SVoD and TVoD), usually have restrictions related to the solvency of the audience. Modern video services use different ways of monetization, giving the viewer the choice of a more profitable method of obtaining content.

OTT (eng. Over the Top) technology for providing video services through the Internet. It involves the delivery of video from the content provider to the user’s device (console, computer, mobile phone) for data networks, often without direct contact with the operator. OTT uses the global model of accessibility, where video and television services can physically be provided on one continent and be available on the other that it does not contradict the rights to distribute the content.

A segment of OTT video is becoming more attractive to players of the media business. Every year on the market there are new streaming services. In the near future it is planned to launch several OTT platforms: entertainment media company, Walt Disney television, NBC, the pay-TV operator Comcast, Telecom operator AT&T, a technology company, Apple. This trend inevitably leads to the fragmentation of the audience. Thus, in the second quarter of 2019, there was a significant slowdown in the growth of the subscriber base of Netflix, which had a direct impact on the dynamics of the value of shares of the company.

With the emergence of a large number of viewing platforms and streaming services to viewers, it becomes more difficult to manage them separately. Therefore, increasing demand for package offers. They allow you to watch content from several different sites. This feature will provide users with the upcoming launch of a new OTT service Apple TV+. In addition to its own content, it will aggregate the content from other streaming services.

The volume of the Russian market OTT video according to the calculations of PwC in 2018 amounted to $190 million it is projected that By 2023 this figure will increase to $328 million, and the growth of the segment will amount to 11.5% per year.

According to the research Agency BrandScience, in the second half of 2018 for the viewing of video content on the Internet paid 27% of Russian viewers. This figure is twice that of 2017 (12%), which suggests that the culture of paid content consumption is developing in Russia.

Gradually to the industry to join the traditional participants of the media market. For example, in 2018, “Gazprom-media” has launched a paid online cinema TNT-Premier, and Yandex has introduced a new video service “Yandex. Ether”. Online cinema Okko was acquired by Rambler Group, which already owned the largest cinema chains “Sinema Park” and “Formula Kino”.

All market participants are betting on the production of exclusive content. It is known that the ivi in 2019 is going to invest RUB 1 billion in the creation of content. The company plans to create 10 mini-series, premium 5 TV series and 10 feature films. Yandex also allocates a budget to Finance the production of about 10 series of its video service.

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