The Over-The-Top (OTT) market is moving in the direction of virtual reality (VR) according to The OTT-Video Services Market—Today's Trends and What is Next for 4K, HDR, HFR and VR.
The global study, commissioned by Level 3 Communications and conducted by Unisphere Research in partnership with Streaming Media, interviewed 628 people from media and entertainment companies across the globe. Respondents were asked to weigh in on the current state of OTT as well as some additional topics ranging from business, technology and competitive challenges and the revenue viability of offering OTT services. The study built on research conducted in 2015, probing respondents on next generation content like virtual reality (VR), 4K, high dynamic range (HDR) and high frame rate (HFR) video.
Among the most compelling results is the opinion of respondents that "VR-video will become a mainstay of streaming video".
While VR is expected to become a mainstay, researchers also found potential barriers to adoption including lack of consumer access to players, delays in the availability of VR devices and bandwidth limitations for OTT VR content delivery.
Key findings:
Close to half (45%) of companies surveyed are offering OTT services, which is a 10% increase over 2015, indicating significant adoption. Of the companies offering OTT services:
52% are researching, getting ready to launch or have already launched VR-video content
Two thirds (67%) believe VR is here to stay but also acknowledged primary business and technical challenges including lack of consumer awareness, interest and fear of competition from free services, user-generated content and bandwidth caps.
Close to half of respondents have plans for 4K broadcasts, 4K VOD streaming and/or 4K live-linear or live event streaming.
On the HDR and HFR front, almost 70% of respondents confirmed they offer or plan to offer both HFR in existing HD video, as well as offering HDR content for greater colour depth.
Nine in 10 (87%) of respondents stated offering OTT services is a viable revenue opportunity. About half of respondents (48%) expected their OTT revenue to grow between 11% and 50% from 2015 to 2016, and almost 20% of respondents anticipated growth to be more than 50% year over year.
Some impending OTT service offerings are expected to begin emphasising live OTT content over on-demand content. If this occurs, it will signal the first time the OTT industry has highlighted live content instead of on-demand content and catch-up services.
Forty percent of respondents have a multiple-content delivery network (CDN) approach for their OTT video services.
Anthony Christie, Chief Marketing Officer, Level 3 said, "As the OTT industry continues to grow and evolve, this study shows there is more focus on not only delivering livestreaming events – which can be a challenge in itself – but also streaming in 4K or even VR. End users expect their videostreaming experience to be seamless, even as they begin to consume next generation content, and this study reveals the ever-increasing importance for OTT providers to have a robust CDN strategy to enable this upward OTT trajectory as well as the importance of a safe, secure, reliable network."
Tim Siglin, Principal Report Author added, "When I started the process of crafting questions for this second annual survey on OTT for Level 3, I was a VR-video skeptic. But it became clear, during the analysis phase, that a VR-video strategic decision has tremendous mindshare for those companies already offering OTT services."
The global study, commissioned by Level 3 Communications and conducted by Unisphere Research in partnership with Streaming Media, interviewed 628 people from media and entertainment companies across the globe. Respondents were asked to weigh in on the current state of OTT as well as some additional topics ranging from business, technology and competitive challenges and the revenue viability of offering OTT services. The study built on research conducted in 2015, probing respondents on next generation content like virtual reality (VR), 4K, high dynamic range (HDR) and high frame rate (HFR) video.
Among the most compelling results is the opinion of respondents that "VR-video will become a mainstay of streaming video".
While VR is expected to become a mainstay, researchers also found potential barriers to adoption including lack of consumer access to players, delays in the availability of VR devices and bandwidth limitations for OTT VR content delivery.
Key findings:
Close to half (45%) of companies surveyed are offering OTT services, which is a 10% increase over 2015, indicating significant adoption. Of the companies offering OTT services:
52% are researching, getting ready to launch or have already launched VR-video content
Two thirds (67%) believe VR is here to stay but also acknowledged primary business and technical challenges including lack of consumer awareness, interest and fear of competition from free services, user-generated content and bandwidth caps.
Close to half of respondents have plans for 4K broadcasts, 4K VOD streaming and/or 4K live-linear or live event streaming.
On the HDR and HFR front, almost 70% of respondents confirmed they offer or plan to offer both HFR in existing HD video, as well as offering HDR content for greater colour depth.
Nine in 10 (87%) of respondents stated offering OTT services is a viable revenue opportunity. About half of respondents (48%) expected their OTT revenue to grow between 11% and 50% from 2015 to 2016, and almost 20% of respondents anticipated growth to be more than 50% year over year.
Some impending OTT service offerings are expected to begin emphasising live OTT content over on-demand content. If this occurs, it will signal the first time the OTT industry has highlighted live content instead of on-demand content and catch-up services.
Forty percent of respondents have a multiple-content delivery network (CDN) approach for their OTT video services.
Anthony Christie, Chief Marketing Officer, Level 3 said, "As the OTT industry continues to grow and evolve, this study shows there is more focus on not only delivering livestreaming events – which can be a challenge in itself – but also streaming in 4K or even VR. End users expect their videostreaming experience to be seamless, even as they begin to consume next generation content, and this study reveals the ever-increasing importance for OTT providers to have a robust CDN strategy to enable this upward OTT trajectory as well as the importance of a safe, secure, reliable network."
Tim Siglin, Principal Report Author added, "When I started the process of crafting questions for this second annual survey on OTT for Level 3, I was a VR-video skeptic. But it became clear, during the analysis phase, that a VR-video strategic decision has tremendous mindshare for those companies already offering OTT services."
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