A new study says over-the-top video services could generate $16.4 billion in revenue, by 2016, with video-on-demand services from pay-TV providers seeing an additional $14.7 billion. The $31.1 billion in combined on-demand revenues represent a significant shift in the way the world is getting its personal entertainment, said IMS Research
As video becomes available on more devices worldwide, connected TVs and game consoles will claim a growing share of the traffic, but set-top boxes will continue to deliver the bulk of on-demand content to homes, said Anna Hunt, principal analyst for IMS, in the study, "Over-the-Top Video: Service Delivery and Business Models."
The number of pay-OTT transaction will increase tenfold, IMS forecasts, reaching 5.9 billion from the current 563 million it estimated for 2011. It predicts some 12.9 billion pay-VOD transactions through STBs by 2016, up from 5.2 billion this year.
"Service and technology providers are finally delivering on the promise of video anywhere, anytime and to any device, which is exciting for consumers who are faced with an increasing amount of content to choose from," said Hunt. "Pay-TV operators are aggressive in pursuing on-demand and multi-device initiatives in order to keep up with this trend and hedge against competition from OTT service providers."
Hunt said pay-TV subscription revenues, estimated at $224 billion worldwide last year, will "continue to dwarf service revenues generated from OTT and VOD."
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