A new report by Pyramid Research, 'OTT Video Market Attractiveness Index: Worldwide Country Rankings, Market Drivers and Positioning Strategies,' examines the growth potential of OTT video services worldwide, providing insight into the opportunity to derive value from them. In order to assess the strength of the OTT video opportunity in different countries, Pyramid Research has especially for this study developed the proprietary 'OTT Video Market Attractiveness Index.' The 50 main markets of the world are ranked across a number of quantitative and qualitative indicators, providing an effective framework for an assessment of which ones offer the best opportunity for OTT video service providers and a methodical identification of growth markets.
- The largest markets - primarily China, Russia, Mexico and Brazil among emerging markets, and the US and Japan among developed markets - will provide the most attractive opportunities for OTTs.
- The ability to derive value from premium content and the rich HD and 4K formats will be critical to the success of OTTs: Given the low margins in the OTT video business, effective monetization of premium content and formats is critical to boosting revenue.
- Country-level content and regulatory frameworks will also be critical to the success of OTT: Digital content release windows, regulatory frameworks - including neutrality regulations and market-specific rules for the provision of video services - the extent of piracy, OTT taxation and other local factors all go into assessing the OTT opportunity in a given market.
- The revenue opportunity will be greater in the markets where 4G services are better established: These are the markets where mobile operators are able to more effectively target online video services to their customers.
- We expect favorable infrastructural conditions to make CEE a hotspot for OTT video: Russia and the other major CEE markets have benefited and will continue to benefit from state-of-the-art broadband infrastructure and high-speed connections.
The OTT Video Market Attractiveness Index research report assesses the strength of the OTT video opportunity across the 50 countries covered by Pyramid Research's Media Forecasts. The report and the index show an overall level of market attractiveness that can be easily used to pinpoint how any of these markets across the world fares on a variety of issues, from broadband infrastructure to pay-TV market dynamics, content licensing and regulatory frameworks.
The report is based on Pyramid Research's OTT Video Market Attractiveness Index, a country-level quantitative index constructed specifically for this report. The Index is a composite rating of countries based on their scores in three subindexes - OTT Readiness, OTT Intensity and Local Factors. Each subindex further consists of 3-4 quantitative and qualitative indicators, comprising country-level broadband and pay-TV markets as well as socioeconomic indicators.
The resulting Index shows an overall level of attractiveness that can easily be used to pinpoint how markets across the world fare on a variety of key factors, from pay-TV demand and growth trajectories to the status of their broadband infrastructure, regulations and content licensing frameworks.
The index results are grouped around a number of key themes, which are discussed and analyzed in order to explain how the OTT video opportunity is taking shape across different global markets. These key themes include: The importance of addressing large broadband markets to build scalable businesses; The factors guiding the formation of online video audiences; The drivers behind the revenue opportunity in different markets; The role of content licensing and regulatory frameworks in the viability and success of OTT initiatives.
Section 1 of the report explains the methodology used in the Index. Section 2 is a strategic analysis of the results of the OTT Video Market Attractiveness Index. Section 3 is a strategic analysis of the emerging-markets results of the OTT Video Market Attractiveness Index. Section 4 provides key takeaways of the Index rankings.
ReasonsÂ ToÂ Buy
- The global OTT attractiveness rankings resulting from the Index shows an overall level of market attractiveness, which can be easily used to pinpoint how any market across the world fares on a variety of issues, from broadband infrastructure to pay-TV market dynamics, content licensing and regulatory frameworks.
- The diversity of data used to construct the Index makes it possible to identify which markets globally can be most appealing to OTT providers, and to understand the socioeconomic strengths and weaknesses that boost or burden the OTT opportunity in each.
- The report provides a deep dive into the key drivers behind the uptake of OTT video services in emerging markets, including Latin America (focusing on Brazil and Mexico), Central and Eastern Europe, (focusing on Russia), Asia-Pacific (China) and the Middle East region.
- The broad but detailed perspective will help pay-TV operators, telcos, pure-play OTTs and investors in different regions identify and assess opportunities to deploy OTT video services.
Table Of Contents
Table of contents
Companies and services mentioned
OTT Video Market Attractiveness Index and report scope
Definitions: OTT video, pricing models and service providers
Section 1: Methodology
1.1 Countries covered
1.2 Index composition
1.3 Data sources
1.4 Index scores and category distribution
1.5 Subindex and indicator breakdown
1.5.1 OTT Readiness
1.5.2 OTT Intensity
1.5.3 Local Factors
Section 2: Global Index rankings and implications
2.1 Global Index results
2.2 The significance of broadband market size
2.3 Drivers for the formation of online video audiences
2.4 The revenue opportunity of OTT video
2.5 The role of content and regulation
Section 3: Emerging Markets Index rankings and implications
3.1 Size of the broadband markets in emerging economies
3.2 The promise of network speeds for OTT video
3.3 Demand for OTT video and traditional pay-TV
3.4 Connected devices and second-screen content
3.5 Mobile video opportunities with 4G
Section 4: Key findings
About the authors
About Pyramid Research
List Of Tables
Table of exhibits
Exhibit 1: Countries covered in the OTT Video Market Attractiveness Index
Exhibit 2: OTT Index composition
Exhibit 3: Global Index and Emerging Markets Index, top 10 positions
Exhibit 4: OTT video opportunity by broadband market size
Exhibit 5: Subindex rankings of the US, China, the UAE and Bolivia
Exhibit 6: OTT video opportunities by online video audience size
Exhibit 7: Size of optimal OTT video age group (25-39-year olds) in 10 of 11 largest markets, 2010
Exhibit 8: Market shares of VoD/OTT services by type in Russia and Mexico, 2013
Exhibit 9: OTT Intensity indicator scores of selected markets
Exhibit 10: Local Factors indicator scores of selected markets
Exhibit 11: Ten highest-ranked markets by broadband-connected households, 2013
Exhibit 12: Key broadband market opportunities for OTT video players, with 2013 broadband penetration rates and 2013-2018 revenue CAGRs
Exhibit 13: Average connection speeds in the 10 markets with the greatest number of broadband-connected households, 2013
Exhibit 14: The 15 markets with the fastest average connection speeds, 2Q 2013
Exhibit 15: FTTH/B penetration of households by region, 2013
Exhibit 16 High-speed broadband adoption (10Mbps+) as a percentage of total broadband connections
Exhibit 17: The 10 emerging markets with the highest pay-TV penetration rates, 2013
Exhibit 18: Key pay-TV market opportunities for OTT video players, with 2013 pay-TV penetration rates and 2013-2018 revenue CAGRs
Exhibit 19: PC penetration of population, 2013, 10 highest-ranked emerging markets
Exhibit 20: Tablet and smartphone penetration of population, 2012 and 2017, Argentina and globally
Exhibit 21: LTE subscriptions as a percentage of total mobile subscriptions, 2018
List Of Figures