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Technological Growth of Over the Top Market
The affordability of smartphones by vast segment of users due to less cost and the upgradation of access networks by the Television Service Providers (TSPs) are among the important factors contributing to OTT growth. The broadband networks provided by incumbent TSPs are used as a platform by the OTT players for the development of new businesses. The rise in the adaption rate of OTT platform have created an increasing demand for faster broadband speed, which translates into a need for huge investments in network up-gradation by the TSPs. An OTT provider can be defined as a service provider offering services, but neither operates a network nor leases network capacity from a network operator. Instead, OTT providers rely on the global internet and access network speeds to reach the user. Services provided under the OTT umbrella typically relate to media and communications and are generally, free or lower in cost as compared to traditional methods of delivery.
The contents may be taken from web such as news items, social media contents, blogs, stock market feeds, traffic and weather reports, or any other content. Increase in wide availability for broadband infrastructure and increase in requirement for compliance and verification has led to the development of OTT applications that assures optimal level of performance and service. MarketsandMarkets expects the OTT market size to increase from USD 28.04 Billion in 2015 to USD 62.03 Billion by 2020, at a CAGR of 17.2%.
OTT is changing the way contents are viewed by providing more precise results than traditional content viewing tools at a much cheaper cost. The OTT platform devices are provided either on-cloud or on-premise. The on-premise based deployment of OTT had higher contribution than cloud-based deployment but the cloud-based OTT is expected to surpass in the next five years due to high adoption rate of cloud technologies.
Various vendors in the OTT market are highly focused on mergers and acquisition and partnerships, agreements, collaborations, to meet the demands of its users and achieve growth in the market. The key players in the OTT market are Netflix, Limelight Networks, Facebook, Inc., Apple, Inc., Google, Inc., and Yahoo, Inc.
To achieve maximum growth in the OTT market, top market leaders are mainly adopting the strategy of mergers and acquisitions. On November, 2015, Tencent Holding Ltd acquired James bond franchise from Metro-Goldwyn-Mayer Studios (MGM) with respect to OTT platform to gain monopoly in OTT field in the Chinese market. On April, 2015, Akamai Technologies acquired Octoshape to enhance its quality of video streams for over-the-top content and to enable Internet Protocol television solutions. This acquisition provided valuable technology and experience in the area of streaming video optimization to Akamai. On December, 2015, Limelight partnered with Curiosity Stream to deliver video in the ideal format through inherently different streaming platforms to their customers.
Apple is a U.S. multinational corporation that specializes in design, development, and market consumer electronics, personal computers, computer software, mobile communication, media devices, and online applications & services. It caters to both domestic and international consumers, businesses, and government agencies for broad products and solutions portfolio.
Facebook, Inc. operates as a mobile application and website that enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers worldwide, which enables people to reach others instantly, and do business efficiently with their customers.
Over the Top Market by Content Type, by Platform (Smart Devices, Laptops, Desktops, and Tablets), by Service (Consulting, Installation, and Maintenance), by Revenue Model, by Deployment Model, by Vertical, by User Type, by Region - Global Forecast to 2020
Markets and Markets
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