Where next for OTT? Yes, we are talking geographically.
Emerging markets are the most likely growth areas for OTT; the traditional markets of the US, EU, and UK are reaching saturation point. This means that OTT providers will need to seek out new markets in areas that traditionally lacked the infrastructure to support streaming services. However, with the growth of high speed mobile broadband in non-traditional markets, there is now a window of great opportunity for companies willing to think outside of the usual geographical boundaries.
In a piece written in January 2022, Shane McCarthy predicted that “much of the future growth of online video subscriptions will come from countries dominated by mobile broadband connections. Although initial success has been based on fixed broadband connections to laptops and connected TV sets, many more future viewers will be using smartphones and tablets. This is because growth in mature fixed broadband markets is now saturated. Therefore, developing countries where fixed broadband is not ubiquitous are where the most significant growth will happen.”(McCarthy, 2022)
In developing markets, OTT services have the potential to reach a large audience, as many people in these markets may not have access to traditional forms of media due to a lack of infrastructure or high costs. With the increasing development of products like Elon Musk’s Starlink, now servicing over 40 countries, the market for OTT will grow exponentially in the coming years. As 5G is rolled out across the globe, the promise of high-capacity, low-latency connectivity will revolutionize the way that content is delivered. It will support everything we currently do with streaming while enhancing it and making it quicker, better, and more portable.
Another factor that will drive the global OTT market is the increasing affordability of smartphones and other devices that can be used to access OTT services. As the cost of these devices decreases, more people in developing markets will be able to afford them, which will increase the number of people who can access OTT services.
This is all good news for content creators and consumers alike. It will also lead to huge diversity in the content and services that are available to people, as different markets demand content that fits their cultural identities and tastes.
The globalization of OTT will lead to a rise in content that reflects the interests of viewers around the world, thus fostering greater cultural understanding and appreciation, as well as creating huge business opportunities for content creators and providers.
In summary, the traditional markets of the US, EU, and UK are reaching saturation point. This means that OTT providers will need to seek out new markets. Emerging markets are the most likely growth areas for OTT in the next few years. The potential to reach a large audience in these markets is huge. As 5G is rolled out across the globe, the promise of high-capacity, low-latency connectivity will revolutionise the way that content is delivered. The globalisation of OTT will lead to a rise in content that reflects the interests of viewers around the globe. These opportunities must be embraced by the industry if OTT is to be a global success story in the future.
McCarthy, S. (2022, January 26). The Future of OTT: What Lies Ahead for the Industry. The Future of OTT: What Lies Ahead for the Industry. Retrieved January 2, 2023, from https://www.thefastmode.com/expert-opinion/22684-the-future-of-ott-what-lies-ahead-for-the-industry