Summary
“OTT Video in Emerging Markets: Monetization Strategies and 5-Year Revenue Opportunity,” a Research Report by Pyramid Research, analyzes the revenue potential of OTT video services across emerging markets in Africa and the Middle East, Asia Pacific, Central and Eastern Europe, and Latin America, identifying and mapping key OTT video players from local telcos and payTV providers to pure-play OTTs, and best practices for differentiation and OTT video monetization. The report provides 5-year projections for SVoD and TVoD accounts and revenue by region and for key countries including Brazil, China, Mexico, Russia, Saudi Arabia and South Africa. The analysis is built upon in-depth case studies of Netflix Latin America, Clarovideo, OSN Go, iRokoTV, Ivi Russia and LeTV.
Key Findings
- The growing investment in broadband infrastructure, with the improvement in network speed and performance, has opened up new opportunities to provide video over IP, not only in more advanced, developed economies but also in emerging markets.
- OTT video is mostly advertising-funded across emerging markets, but paid models are gaining traction within hybrid business models, whereby services offer free content to expand the user base, but at the same time position premium transactional video on demand (TVoD) and subscription video on demand (SVoD) content to generate additional revenue. In recent years, OTT business models entirely relying on advertising revenue streams have become difficult to sustain, given the high cost of content.
- Across emerging markets, we expect SVoD accounts will increase more than five-fold between 2014 and 2019; the proliferation in China of hybrid models combining AVoD and SVoD will be a major driver for growth. The cumulative paid OTT revenue from SVoD and TVoD services is projected to be as much as US$18.8bn for the 2015-2019 period, over 80% of which will come from the emerging markets in Asia Pacific and Latin America. Among all emerging markets examined, China, Russia, Brazil and Mexico offer the most scale and growth potential over the next five years.
- The opportunity to position SVoD and TVoD services successfully is stronger for local companies, provided that they have enough funding to invest in attractive content, and that they can deploy sustainable business models for paid content.
- In spite of the growing importance of mobile, with increasing 4G take up, the bulk of OTT video usage will remain over fixed broadband networks, with WiFi representing a key enabler technology for nomadic usage on secondary screens.
- In order to reinforce their market position, all pay-TV operators should consider aggregating third-party OTT services within the main service portfolio in addition to standalone OTT propositions.
Synopsis
The “OTT Video in Emerging Markets: Monetization Strategies and 5-Year Revenue Opportunity” report offers an in-depth examination of the OTT video market trends, ecosystems and business models in emerging regions, highlighting unique challenges to such market environments and best practices for effectively positioning OTT video propositions. The report provides demand and revenue forecast for subscription video on demand (SVoD) and transactional video on demand (TVoD) for Africa and the Middle East, Emerging Asia Pacific, Central and Eastern Europe and Latin America. Country-level forecasts are included for key markets including Brazil, China, Mexico, Russia, Saudi Arabia and South Africa.
The report is structured as follows:
Section 1: OTT Video Market Trends and Monetization Strategies in Emerging Markets ? Challenges and opportunities for OTT service providers, positioning strategies for pay-TV operators and effective business models for OTT video provisioning.
Section 2: SVoD and TVoD Demand and Revenue Outlook Across Emerging Markets ? Overview of forecast assumptions and covered countries and regions, review of SVoD accounts and paid OTT video revenue per region.
Section 3: OTT Video Opportunity, Competitive Landscape and Keys to Success in Latin America; including region-level market overview and trends as well as deep-dive analysis of the region's largest markets Brazil and Mexico and key players Netflix Latin America and Clarovideo.
Section 4: OTT Video Opportunity, Competitive Landscape and Keys to Success in Africa and the Middle East; including region-level market overview and trends as well as deep-dive analysis of Saudi Arabia and South Africa and key players OSN Go and iRokoTV.
Section 5: OTT Video Opportunity, Competitive Landscape and Keys to Success in Central and Eastern Europe; including region-level market overview and trends as well as deep-dive analysis of the region's largest market Russia and a key player Ivi Russia.
Section 6: OTT Video Opportunity, Competitive Landscape and Keys to Success in Emerging Asia Pacific; including region-level market overview and trends as well as deep-dive analysis of the region's largest market China and a key player LeTV.
Section 7: Key Takeaways and Strategic Recommendations for OTT Video Service Providers.
Reasons To Buy
- The “OTT Video in Emerging Markets: Monetization Strategies and 5-Year Revenue Opportunity” report provides a comprehensive examination the nascent OTT video market opportunity to help executives make informed investment decisions, develop effective partnerships and optimize return on investment.
- This report provides a five-year forecast of SVoD accounts and SVoD and TVoD revenues by region and for key countries across emerging regions to enable executives effectively position their companies for emerging trends in demand for OTT video and growth opportunities.
- The report incorporates in-depth overview of key challenges and business model trends in the OTT video market across emerging markets and best practices for monetizing OTT video for stakeholders to develop competitive strategies as well as differentiation.
Table Of Contents
Table of contents
Table of exhibits
Executive summary
Section 1: OTT Video Market Trends and Monetization Strategies in Emerging Markets
Definitions: OTT video pricing and models
Definitions: OTT service providers
Definitions: Content provision in the connected era
Challenges and opportunities for OTT service providers
Content procurement
Piracy and payments
The role of legacy broadband and the mobile opportunity
Positioning strategies for pay-TV operators
Monetizing OTT video
Section 2: SVoD and TVoD Demand and Revenue Outlook Across Emerging Markets
Key forecast assumptions
Regions and countries covered
Emerging markets: SVoD accounts by region
Emerging markets: SVoD penetration of households by region
Emerging markets: Paid OTT video revenue forecast by region
Emerging markets: Paid OTT revenue relative to pay-TV revenue
Section 3: OTT Video Market Opportunity, Competitive Landscape and Keys to Success in Latin America
OTT video market overview
SVoD accounts forecast
Paid OTT video revenue forecast
Key market trends
Mexico: OTT video market overview
Mexico: Paid OTT video accounts and revenue forecast
Mexico: Key market trends
Brazil: OTT video market overview
Brazil: Paid OTT video accounts and revenue forecast
Brazil: Key market trends
Case studies:
Netflix LATAM: Content and partnerships and business outlook
Clarovideo: Content and partnerships and business outlook
Section 4: OTT Video Market Opportunity, Competitive Landscape and Keys to Success in Africa and the Middle East
OTT video market overview
SVoD accounts forecast
Paid OTT video revenue forecast
Key market trends
South Africa: OTT video market overview
South Africa: Paid OTT video accounts and revenue forecast
South Africa: Key market trends
Saudi Arabia: OTT video market overview
Saudi Arabia: Paid OTT video accounts and revenue forecast
Saudi Arabia: Key market trends
Case studies:
OSN Go: Content and partnerships and business outlook
iRokoTV: Content and partnerships and business outlook
Section 5: OTT Video Market Opportunity, Competitive Landscape and Keys to Success in Central and Eastern Europe
OTT video market overview
SVoD accounts forecast
Paid OTT video revenue forecast
Key market trends
South Africa: OTT video market overview
Paid OTT video accounts and revenue forecast
Russia: OTT video market overview
Russia: Paid OTT video accounts and revenue forecast
Russia: Key market trends
Case study:
Ivi Russia: Content and partnerships and business outlook
Section 6: OTT Video Market Opportunity, Competitive Landscape and Keys to Success in Emerging Asia Pacific
OTT video market overview
SVoD accounts forecast
Paid OTT video revenue forecast
Key market trends
South Africa: OTT video market overview
Paid OTT video accounts and revenue forecast
Key market trends
China: OTT video market overview
China: Paid OTT video accounts and revenue forecast
China: Key market trends
Case study:
LeTV: Content and partnerships and business outlook
Section 7: Key Takeaways and Strategic Recommendations for OTT Video Service Providers
Appendices
Companies mentioned
Sources and related research
About Pyramid Research
List Of Tables
NA
List Of Figures
Ex 1: OTT Video Business Models
Ex 2: OTT Content Providers
Ex 3: OTT Content Provision for the Connected Household
Ex 4: OTT Video Challenges and Opportunities In Emerging Markets
Ex 5: OTT Video, Cost and Revenue Scenario (MGs)
Ex 6: Cost and Revenue Scenario (MGs Diluted, CPS)
Ex 7: Converging Content Propositions
Ex 8: Major Types of Streaming Content on Netflix
Ex 9: Home Video Content, Legal and Illegal in Emerging Markets
Ex 10: Broadband Penetration in Emerging Market Regions
Ex 11: Applications and Bandwidth Requirements
Ex 12: Key LTE Services for the Consumer Segment
Ex 13: LTE Subscribers by Region, 2013-2019
Ex 14: OTT/VoD Growing Usage, UK Benchmark
Ex 15: Telefonica, Unified Multi-Technology Global Video Delivery Platform (GVP)
Ex 16: OTT Strategic Options for Pay-TV Operators
Ex 17: SVoD Accounts by Region
Ex 18: SVoD Penetration of Households by Region
Ex 19: Paid OTT Video Revenue (SVoD and TVoD) By Region
Ex 20: Paid OTT Revenue (SVoD and TVoD) As a Percentage of Pay-TV Revenue
Ex 21: LATAM, Selected OTT Services
Ex 22: SVoD Growth in LATAM
Ex 23: OTT Revenue Opportunity in LATAM
Ex 24: Share of Paid OTT SVoD/TVoD Revenue, Brazil, Mexico and Rest of LATAM
Ex 25: Main OTT Video Service Providers in Mexico
Ex 26: Share of Paid OTT by Accounts
Ex 27: Mexico Paid OTT Accounts
Ex 28: Mexico OTT Revenue Opportunity
Ex 29: Cinepolis and Vudu Prepaid Cards in Mexico
Ex 30: Main OTT Video Service Providers in Brazil
Ex 31: Broadband Video Opportunity in Brazil
Ex 32: Brazil Paid OTT Accounts
Ex 33: Brazil OTT Revenue Opportunity
Ex 34: 4G Opportunity in Brazil
Ex 35: Netflix SVoD Service Pricing Across Markets, December 2014
Ex 36: Netflix Marketing Spend As % of Revenue
Ex 37: Netflix Partnership with Antel Uruguay
Ex 38: Netflix Prepaid Card in the US
Ex 39: Netflix Subscribers by Region 2014
Ex 40: Broadband Penetration of Households, 2013-2019
Ex 41: Clarovideo, Monthly Subscription Pricing
Ex 42: Clarovideo Footprint, December 2014
Ex 43: Clarovideo Smart TV Advertising
Ex 44: Clarovideo Colombia Discount Offer
Ex 45: Clarovideo Telmex Promotion, 2012
Ex 46: AME, Selected OTT/SVoDs
Ex 47: SVoD Growth in AME
Ex 48: OTT Revenue Opportunity in AME
Ex 49: AME OTT Market Potential, 2014 and 2019
Ex 50: South Africa OTT Video Service Providers
Ex 51: South Africa Paid OTT Accounts
Ex 52: South Africa OTT Revenue Opportunity
Ex 53: Fixed and Mobile Broadband Opportunity In South Africa
Ex 54: Saudi Arabia OTT Video Service Providers
Ex 55: Saudi Arabia Paid OTT Accounts
Ex 56: Saudi Arabia OTT Revenue Opportunity
Ex 57: Piracy Workarounds by Expat Segments
Ex 58: Wherever TV Channel Line Up
Ex 59: OSN Go by OSN Market, 2014
Ex 60: Promotional Material, OSN Go Partnership with Vodafone Qatar 4G
Ex 61: AME Smartphone Sales, 2014-2019
Ex 62: Film Production by Content Hub In 2013
Ex 63: iRokoTV Pricing (US$)
Ex 64: Nollywood Content on iRokoTV
Ex 65: Nigeria Android Smartphone Sales, 2014-2019
Ex 66: CEE, Selected OTTs
Ex 67: SVoD Growth in CEE
Ex 68: OTT Revenue Opportunity in CEE
Ex 69: Fiber Broadband in CEE
Ex 70: Fixed Broadband Download Speed, CEE Global Rankings
Ex 71: Russia OTT Video Service Providers
Ex 72: 2014 Share of Registered OTT Accounts
Ex 73: Russia Paid OTT Accounts
Ex 74: Russia OTT Revenue Opportunity
Ex 75: ARPU of Paid OTT Services
Ex 76: The OTT/Telco Partnership Value
Ex 77: Ivi Unique Monthly Viewers by Platform
Ex 78: Ivi TVoD Vs SVoD Pricing
Ex 79: Ivi's Main Content Partners
Ex 80: Smartphone Shipments in Russia, 2010-2014
Ex 81: Monthly Views on Non-Pc Devices, 2011-2013
Ex 82: Emerging APAC, Selected OTT/SVoDs
Ex 83: SVoD Growth in Emerging APAC
Ex 84: OTT Revenue Opportunity in Emerging APAC
Ex 85: LTE in Emerging APAC
Ex 86: China, Content Partnerships of Top 5 OTT Video Service Providers
Ex 87: China Paid OTT Accounts
Ex 88: China OTT Revenue Opportunity
Ex 89: Challenges and Opportunities for Paid OTT Video in China
Ex 90: LeTV Subscription Pricing
Ex 91: Hours of Video Viewed, Jul-Aug 2014
Ex 92: NBA on LeTV
Ex 93: LeTV SmarTV 84
Ex 94: LeTV Profit and Revenue, 2012-2013
Ex 95: LeTV Month-End Stock Price, 2014
