Premium OTT Being Driven by Local, Live and Linear to Gain Huge Global Growth

“The demand for high-quality paid-for video services delivered via OTT is growing in all regions of the world” [1]

The demand for OTT video is reaching fever pitch. And according to a recent study undertaken by Vindicia, the B2C subscription management solutions provider: "premium OTT subscription revenue will continue to rise quickly across all regions, and growth will be fueled by local, live and linear content, as well as by easier payment solutions" [1].

The new study, which was carried out by research consultancy firm MTM, for Vindicia, and entitled: "The Global Prospects for Premium OTT," put the magnifying glass over the development and prospects of premium over the top services in four locations: Asia Pacific, Latin America, the US and Western Europe. Here are the forecasts:

Forecast For Western Europe

The researchers predict that in the case of Western Europe: "premium OTT will grow strongly in the next three years as connected consumers embrace services from: global OTT players, new subscription services from local and regional broadcasters, and direct-to-consumer services from content brands" [1]. Further, the United Kingdom is on course to hold its position as Western Europe's biggest market for premium OTT. This is confirmed by the prediction that its revenues will escalate to $1.63 billion by 2020, up from $1.18 billion in 2017 [1].

Forecast For the US

In a similar vein, in America, revenue from premium OTT subscriptions are also predicted to shoot up. In fact, by 2020, they are expected to exceed $21.2 billion - a huge leap from $16.4 billion in 2017. Further, while Hulu, Amazon and Netflix are on course to maintain their hold over the online video market, Vindicia also anticipates direct to consumer offerings from major players like Disney, specialist service providers such as WWE and Chrunchyroll, and live sports provided by OTT platforms [such as OONA TV], to also flourish [1].

Forecast For the Asia Pacific Region

As far as the Asia Pacific region is concerned, income from premium OTT services is expected to escalate rapidly, even though in some instances, it is derived from a low base. For example, in the case of Thailand, revenue is likely to rev up to $108 million in 2020 - leaving behind just $66 million in 2017. While in the same time frame, "Indonesia [which includes major player, OONA Indonesia, which has partnered with Telkom Indonesia to provide 185 million-plus Indonesians with its OTT service], will expand from US$26 million to US$72 million" [1]. Within the region, the premium OTT services market will be headed by pan-regional platforms [such as OONA - the cutting-edge virtual TV platform & operator], iflix, Viu and HOOQ - players that are able to entice local audiences by offering reasonably priced subscriptions, and also offer excellent local content [1].

Forecast For Australia

Australia's OTT premium market represents one of Asia Pacific's biggest regions, and with revenues predicted to achieve US$420 million by 2020 - up from $280 million in 2017, it is firmly on course for continuing its success for sizeable growth. For the predictable future, Netflix stands as Australia's predominant subscription service [1].

Forecast For Latin-America

"Mexico will become the largest market in Latin America for premium OTT services by 2020, with revenues forecast to reach $678 million, up from $410 million in 2017" [1]

In the Latin-American region, where internet access is bundled with local content offerings, premium OTT subscription growth is being ramped up due to far better broadband connectivity. On the other hand, however, the latter is also promoting content piracy. 

In a Nutshell

According to Kris Nagel, the head of Vindicia: “As revenues for premium OTT services increase in all regions and the global players continue to dominate, a common thread to this research is that consumers will nevertheless choose to subscribe to niche content when the price and the experience are right” [1].

OONA Premium TV

In addition to OONA's highly successful data-free/sub-free mobile TV option, which is accessible to 185 million-plus Indonesians, and is on course to be available to billions of people in other parts of Asia, Africa, South America, the Middle East, the US and Europe; OONA offers a cutting-edge SVOD premium entertainment service which incorporates local, live and linear content. 

The founder and CEO of OONA Global, leading digital strategist, Christophe Hochart, understands that in order to achieve robust subscription growth, aside from appropriate pricing, flexible plan options  and exclusive content, one extremely important element of the consumer experience, is enjoying access to frictionless payment solutions. To that end, OONA's Premium option provides a seamless integration with payment platforms. - Something which Kris Nagel of Vindicia, also views as essential for winning platforms [1].

OONA's Broad Range of Consumer Options

"No More TV Box (Pay-TV) - Viewers Only Need OONA & an Internet Connection on a 3G, 4G or Future 5G Mobile Device"

These days, we all want flexibility. This is a number one consideration with OONA, and its strategy empowers viewers so they can enjoy the freedom of not being tied down with financial commitments to cable companies etc. - In fact, OONA consumers have a whopping five choices:

Option 1

Viewers do not have to pay subscription or data charges. This is because OONA's  AVOD (ad-based live & on demand video service) is completely funded by personalised ads which are regularly updated according to what branded products each individual consumer is interested in at the time. Further, the technology that OONA uses enables first-class digital FTA (free-to-air) broadcasting in a clear (unencrypted) form.

Option 2

OONA's SVOD (subscription based live and on-demand video service), offers viewers the choice of paying for specific premium content on a daily, weekly, monthly, quarterly or annual basis. 

Option 3 

OONA's TVOD (transaction-based live and on-demand video service), provides a pay-per-view option. So for example, if a couple just want to enjoy a newly released premium film on the odd Friday night or weekend, then they do not have to sign up for an extended period of time, and be burdened for paying for more content than they really want, like they would have to with other platforms.

Option 4

Viewers can unlock premium content by using their tcoins (OONA's vitural currency rewards which can be used for telcom products, branded goods, discounts, meals and other fun things). These tcoins are easy to accrue from watching various channels, looking at ads, sharing content with friends and family, and interacting with OONA's AI Genie in the app, Siskabot. They are stored in a virtual wallet.

Option 5

Premium pay-TV content can be easily included in the user's telcom data plan bundle.

Reference

O'Halloran, Joseph (2018). “Local, live and linear to drive massive global growth of premium OTT.” https://www.rapidtvnews.com/2018091453510/vindicia-local-live-and-linear-to-drive-massive-global-growth-of-premium-ott.html#ixzz5RGDa8CrX   Accessed 20 Sept. 2018.