DALLAS: Global over-the-top (OTT) video subscription revenues are forecast to rise from nearly $9bn in 2014 to more than $19bn in 2019, according to new industry research.
Park Associates, a Texas market intelligence firm, said OTT video services are experiencing a boom as a variety of new players enter the market, including British broadcaster Sky, which recently announced plans to roll out video streaming services across Europe.
Currently, 57% of households with broadband in both the US and UK subscribe to an OTT video service, the report said, while the proportion in Spain is 29% and, in Germany, it is 24%.
About 7% of all US homes, or 8.4m households, subscribe to broadband and at least one OTT video service but do not subscribe to pay TV, the report stated.
These figures include consumers who have discontinued their pay-TV service ("cord cutters") and those who have never subscribed to pay TV. In other Western countries, the figure is approximately 4%.
"The OTT video services marketplace continues its rapid rate of change, impacting the video ecosystem across world markets," said Brett Sappington, director of research at Park Associates.
"While operator attempts at TV Everywhere have made little impact, OTT video services are experiencing a boom. How the industry responds to this change will ultimately affect the fundamental structure of the video industry for years to come.
"Avid video consumers are still taking pay-TV services if they can afford them. However, companies in the video ecosystem are eager to reach those consumers who are currently falling through the pay-TV cracks."
Data sourced from Parks Associates; additional content by Warc staff