MTM Study: Premium OTT Market Will Continue Steady Growth
Access to high-quality premium content is the biggest non-technological barrier to entry and success for OTT services in Europe, according to a study released today by MTM. But as Pay TV services lose their appeal, the research firm predicts continued steady growth in OTT services across Western Europe between now and 2017.
The study, spnosored by subscription billing service provider Vindicia and OTT technology provider Ooyala, surveyed 30 OTT service providers in the UK, Dutch, and German markets. According to a report based on the study and released today, the UK market will grow from £110-130 million last year to £390 million in 2017, and the Dutch market will expand from €15-20 million in 2013 to €190 million in 2017. The study predicts the German market won't grow quite as quickly due to lower broadband penetration, but will still expand from €30-35 million in 2013 to €117 million in 2017.
The study blames Netflix and Amazon for "inflating" the licensing costs of premium content as those incumbents invest in exclusive, long-term licensing deals, and says that access to exclusive content remains the primary differentiating factor among OTT services.
And while subscription-based services will continue to dominate, the study reports that "significant opportunities" exist for alternative monetisation strategies, particularly transactional services, ad-supported services, and hybrid offerings.