The Future of TV
The global ‘Over The Top’ (OTT) Market size is projected to grow from $202.5 billion in 2022 to $434.5 billion by 2027” (MarketsandMarkets)
Analytics of the TV market in general and specifically the OTT market, notice two clear trends. On one hand the OTT Market is growing rapidly with imaginary growth projections and on the other hand the incumbent and streaming Linear TV services are shrinking at an accelerated rate. It looks like several SVOD services are taking over the market. Is it really the end of the road for Linear TV or can it revive again?
Decline of Liners tv and Raise of OTT TV
We have collected highlights from some analytics reports, below:
“The Decline of Linear TV and Rise of New Platforms
We have collected highlights from some analytics reports, below:
“The Decline of Linear TV and Rise of New Platforms
Analytics of the TV market in general and specifically the OTT market, notice two clear trends. On one hand the OTT Market is growing rapidly with imaginary growth projections and on the other hand the incumbent and streaming Linear TV services are shrinking at an accelerated rate. It looks like several SVOD services are taking over the market. Is it really the end of the road for Linear TV or can it revive again?
As OTT streaming services empower consumers to choose their content experience, traditional TV is facing significant challenges. Global revenue for traditional TV is expected to shrink at a -0.8% CAGR, from $231 billion USD in 2021 to $222.1 billion USD in 2026. The death of cable is a long way off, but cord-cutting is becoming a more appealing option for consumers as content libraries expand and previously gated events, like sports, find their way onto OTT video services.
OTT streaming could also benefit from the rise of new platforms. By 2026, around 25% of the global population is expected to use virtual reality (VR) and augmented reality (AR) technology. It’s difficult to tell if VR and AR will become a mainstay channel for consumers, as many people report eyestrain issues during prolonged use. But it opens opportunities for OTT content providers to offer immersive and interactive content, enhancing the overall viewing experience and expanding the possibilities for storytelling and engagement.
The future of OTT streaming is undoubtedly bright, with soaring revenues, growing user bases, and evolving industry trends. As traditional TV faces challenges, OTT streaming providers must focus on overcoming subscription fatigue, exploring VR and AR technologies, personalizing content, and optimizing advertising strategies to maintain their momentum.” (TvScientific)
• One of the latest reports of Ampere Media explores the opportunities for broadcast groups to reassert their position within Europe’s TV markets precisely by forging stronger streaming strategies.
“For decades, commercial broadcasters have led the TV industry across the globe, serving as key content providers for national audiences. However, they now face a range of challenges. With the rise of streaming platforms from global rivals and the rapid evolution of viewer preferences, traditional broadcasters are feeling the pressure and are actively seeking to revamp their business models.”
Source: “How Europe’s commercial broadcasters can fight back”, Ampere Media report, by Neil Anderson, April 2024
• “Thanks to technological advancements and broadcast innovation, global demand for OTT content has never been greater. As OTT services allow users to stream media content via the internet without the need for cable or satellite subscriptions, they have become an attractive alternative for audiences wanting to bypass geographic restrictions and broadcast schedules alike. As of June 2024, the number of OTT video users worldwide stood at around 3.9 billion, with penetration rates surging in countries like the United Kingdom, Canada, and the United States. In these developed digital markets, consumers are gradually cutting the cord and switching away from traditional pay TV consumption in favor of more flexible, affordable, and expansive video formats. Unsurprisingly, the highest share of OTT revenue is generated by SVOD channels.”
• “When the market has consolidated, the maturity stage settles in. Picture this: a few key players are fiercely competing for a core consumer base. This causes the cost of acquiring customers to increase, while revenues remain rather stable. At this stage, it’s difficult (but not impossible) for a competitor to enter the market, providing they bring some form of unique selling point, which is obviously a major consideration in the streaming space.” (Simplestream https://www.simplestream.com/news/growth-maturity-decline-is-it-too-late-to-go-ott-)
