Only a fraction of consumers that own an internet-capable TV device actually connect it to become over-the-top (OTT) video consumers, according to research by In-Stat.
However, the research firm is predicting that revenues from multi-screen content platforms will reach $21 billion (€15.7 billion) by 2015, despite this hurdle. Revenue will come from online VOD services and electronic-sell-through (EST).
About 17 million US households currently own a connected TV, and ownership of streaming media players has nearly doubled since the end of 2010.
“OTT video is continuing to grow, overcoming the barriers of low device connect rates and cumbersome user interfaces,” said Keith Nissen, research director of In-Stat.
“Even stronger growth of I-VOD and EST video services is possible if device manufacturers and digital retailers can put together a simpler, plug-n-play solution for getting online video to the TV (web-to-TV). The proliferation of tablets is also contributing to OTT growth.”
Some of the other factors affecting the OTT video market: streaming video transactions will reach just under 1 billion in 2010.
Netflix and other S-VOD suppliers are shifting to a more TV-centric model and will soon be competing directly with HBO, Showtime, and Starz.
The collaborative and competitive models among physical and digital retailers, content owners, and pay TV operators are shifting rapidly as players in the ecosystem grapple with the evolving mix of physical versus digital channels, EST, pay-TV, OTT, and subscription VOD.
