The latest data from Juniper Research shows that, by 2022, subscription-based video on demand (SVOD) services such as Netflix and Amazon will drive OTT revenues to US$120 billion. In 2017, this figure was only US$64 billion.
Research indicates that by 2022, more than a quarter of households worldwide will subscribe to SVOD services.
This report is entitled Digital TV and Video: Network and OTT Strategy (2017-2022). The report pointed out that the overhead on OTT original content is continuing to grow. Juniper predicts that Netflix will invest more than $6 billion in original content between 2017 and 2018, compared to the $1.4 billion spent on publicly funded BBC content.
2017-2018 Annual budget of each content provider's original program (millions of US dollars)
(Source: Juniper Research)
Investment in SVOD services such as Netflix is ​​surpassing traditional vendors and they are trying to create their own original content. Research report author Lauren Foye said: “The success of this strategy will depend on whether these suppliers can continue to produce explosive models like “Strange Story.†Because of the increasing mobility of consumers, the Loyalty is also getting lower and lower, and OTT operators may find users easily change services."
In addition, Juniper believes that OTT operators will also strive to compete for sports broadcast rights. Amazon is likely to bid for next year's Premier League broadcast rights, and the former buyers of such content are usually linear pay-TV services. The study pointed out that when such content is held by OTT operators and traditional suppliers, consumers will face unprecedented tears and need to subscribe to multiple services.
In terms of local content supply, traditional broadcasters are more dominant than OTTs. Although there are regional OTT services such as iFlix, they cannot achieve the same level as broadcasters can provide.
The media transmission over IP facilitates broadcasters to promote the use of their own OTT services, such as the BBC's iPlayer. Juniper predicts that the data consumption on these devices will increase dramatically to reach 800,000 PB per year by 2022.
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