By 2014 there will be 57 million US broadband households viewing full-length online video on the TV, according to In-Stat. Revenue associated with this web-to-TV video content will grow from $2 billion (€1.56 billion) to over $17 billion over a five-year period, showing a faster than expected growth for the sector.
“The over-the-top (OTT) video market represents a new distribution channel for digital entertainment. Content producers want to market premium video content directly to the consumer,” said Keith Nissen, Principal Analyst, In-Stat. “However, they have not yet decided the best way to monetise OTT video content and how to manage the OTT opportunity in context with their legacy distribution partners.”
Some of the factors affecting this revenue growth include: the installed base of web-enabled consumer electronics video devices will grow from 70 million in 2009 to 237 million in 2014. The total number of US broadband households that own web-enabled CE video devices will nearly triple to 98 million by 2014. Within five years, over 11 million operator-provisioned hybrid STBs will be delivering online video content directly to the TV.