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Report: Over-the-top Video Worth $32 Billion Through 2016

23 Jun, 2011 By: Chris Tribbey

The increase in over-the-top, or OTT, video from consumer electronics manufacturers, pay-TV operators, DVD rental companies, retailers and others will lead to a combined $32 billion in revenue through the next five years, according to a new report from IMS Research.

“Advertising-funded services and free videos make up an overwhelming share of online video traffic today, and this won’t change dramatically over the next five years,” said Anna Hunt, principal analyst for IMS. “But we will start to see some significant growth in pay-OTT transactions and revenues as more market leaders in pay-TV, media and CE invest in exploring strategies for effective OTT video service delivery.”

The report forecasts OTT endeavors and potential revenues for 10 countries, and says the amount of free OTT content being offered — including that from pay-TV operators and online distributors — will decrease in favor of paid-for content.

“Some of the main drivers behind OTT revenue growth are service providers and content providers’ willingness to explore new paradigms,” Hunt said. “Support for multiple devices and platforms, widespread partnerships and acquisitions and global expansion of successful services are some of the vital factors that will shape the market through the end of the decade.”

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