The North American over-the-top (OTT) services market is expected to witness market growth of 13.1% compound annual growth rate [CAGR] through 2025, according to a report by Research and Markets (www.reseachandmarkets.com).
A big growth opportunity can be observed in live and linear OTT services (such as Apple TV+), based on current viewing habits and untapped content segments, which are projected to be an integral part of the next generation of OTT video, adds the research group. Pay-TV providers are in the right position to create live streaming services that take advantage of content best experienced in real-time. These may include talk shows, weather, news, and sports. However, Research and Markets says that could change as content owners start developing their platform and partnerships with OTTs.
The advent of disruptive digital technologies, mobile numbers, high-speed internet, and several applications will encourage the customers to opt for OTT services. What’s more, the cost-efficiency is expected to fuel over-the-top services demand over the forecast period while also obstructing the industry through public regulations, says Research and Markets.
Also, the growing penetration of broadband, as well as the emergence of large segments of the population on high per capita income, has increased demand for OTT in emerging economies. The quality and efficiency of broadband networks are greatly improved which also fuels market growth for OTT services.
Research and Markets says the biggest challenge facing the demand for OTT services is quality entertainment. Content is a basic requirement for subscription driving and increasing consumer affinities. There are also obstacles in the way material is found and delivered.
Even if a website hosts content, it’s almost impossible to retain users if they are unable to discover these offers. Also, providers must ensure the content is correctly provided to the end-users. The provision of high-quality services without delay in delivering content holds equal importance, says Research and Markets.