The over-the-top (OTT) market is set to explode over the next five years, says research MarketsandMarkets, from $25.33 billion in 2014 to $54 billion in 2019.
North America and Asia-Pacific (APAC) are expected to be the biggest markets in terms of revenue contribution, while Latin America and Europe are expected to experience increased market traction, during the forecast period.
The Over The Top (OTT) Market report also showed that the market is being driven by forces such as increasing penetration of smart devices — principally smartphones, tablets, desktops, laptops, smart TV, and gaming consoles — and the increasing growth of broadband connectivity. Also, noted MarketsandMarkets, OTT services are cheaper than the traditional services like SMS or broadcast TV.
That said, the report cautions that before they can cash in, OTT service providers are facing challenges in terms of dependency on Internet networks, monetisation of user base and fierce competition. Specifically, the research points to challenges such as securing the flow of content and network infrastructure and intense competition. The evolution of the network infrastructure, communication methods and the familiarity of people with the applications will brighten the future of over-the-top services.
MarketsandMarkets expects the market to be led by companies including Akamai, Apple, Facebook, Google, Limelight, Microsoft, Netflix, Nimbuzz, Tencent Holding and Yahoo!.