The global OTT video business has grown substantially due to the COVID-19 pandemic and factors sustaining the OTT phenomenon. Key growth statistics show subscription OTT video time spent increasing from 2018 to 2022. 45 million new subscribers will be added in 2020 in Western Europe alone. OTT market revenue is projected to reach $438.5 billion by 2026, up from $110.1 billion in 2018. Various catalysts like increasing broadband penetration, growing demand for exclusive content, innovative pricing models, and advances in streaming technology have fueled OTT video growth. Technology innovations in areas like video compression, multi-CDN strategies, and hyper-personalization are also helping sustain the OTT phenomenon.

1. GLOBAL OTT VIDEO BUSINESS
FUELED BY COVID-19 &
SUSTAINING THE OTT PHENOMENON

2. KEY OTT VIDEO-ON-DEMAND GROWTH STATISTICS
Subscription OTT Video: Average Time Spent in the
US, 2018-2022
Subscription over-the-top(OTT) video % Change
0:44
20.0% 23.0%
7.3%
4.7%
15.0%
0:51
1:07
1:02
1:1
0
45 MILLION SUBSCRIBERS will be added in 2020 alone driven by COVID-19
in Western Europe by 2025, 2x from 88 million in 2019
: Research & Markets report
197 MILLIONSVOD SUBSCRIPTIONS
INCREASE IN THE NUMBER OF VIEWERS
IN THE FIRST HALF OF 2020 VS 2019: BRIGHTCOVE
30% MORE
VIEWERS
INCREASE IN OTT MARKET REVENUE
On April 4. Americans watched 27 billion minutes
of streaming content in TV that is 50,000 years of
content in just one day, versus about 70 billion per
week a year ago.
$438.5 Bn
Global OTT market
size by 2026
155.6 Bn
During COVID-19
in 2020
$110.1 Bn
in
2018
Brain Fuhrer,
SVP Product Strategy at Nielsen
Hrs:mins per day among population and % change

3. CATALYSTS IN THE GROWTH OF OTT VIDEO SERVICES MARKET
Increasing Broadband
Penetration
Growing Demand
for Exclusive Content
Innovative
Pricing Models
Advances In Media
Streaming Technology
Personalization
in OTT Apps
Smartphone Penetration &
High-Speed Mobile Internet
OTT VIDEO
GROWTH
CATALYSTS

4. UNDERSTANDING THE OTT CATALYSTS IN DETAIL (1/3)
▪ COVID-19 accelerated innovation with AR & VR in
different markets:
✓ Advanced telemedicine
✓ Remote working
✓ Education
▪ Governments globally have invested in high-
speed broadband & 5G
▪ 3.5bn smartphone users globally can connect to
OTT services & access content at a click
▪ MNOs in emerging countries have accelerated the
rollout of mobile broadband & LTE
▪ MNO partnerships & packages bundling have
made access to OTT very affordable
INCREASING BROADBAND PENETRATION
SMARTPHONE PENETRATION &
ACCESSIBLE HIGH-SPEED MOBILE INTERNET

5. UNDERSTANDING THE OTT CATALYSTS IN DETAIL (2/3)
▪ Deep consumer insights gleaned from OTT apps
helps service providers tailor their offerings by
making data-driven decisions
▪ Seamless viewing experience via:
✓ Localization of content
✓ A gamut of genre choices
✓ Personalization & flexibility on device
ADVANCES IN MEDIA STREAMING
TECHNOLOGY
▪ Cord-cutting & easy access to content gave birth
to OTT. Technology propagation has helped OTT
grow at a fast pace
▪ Features that make OTT easy to use:
✓ Cloud-based streaming services
✓ Support to live-content with VOD
✓ Large content repository
✓ Intuitive content discovery
✓ Zero-buffering & Adaptive bitrate streaming
PERSONALIZATION IN OTT APPS

6. UNDERSTANDING THE OTT CATALYSTS IN DETAIL (3/3)
▪ OTT monetization models: SVOD, TVOD, AVOD &
Freemium
▪ Freemium model helps grow subscribers & ARPU
▪ Different pricing models for different markets. For
India, OTT players are adopting:
✓ Aggressive distribution & pricing strategies
✓ Sachet pricing
✓ Mobile-only packs
▪ COVID-19 crisis led to:
38% growth in OTT VOD viewership
vs
6-7% growth in Linear TV viewership
▪ Personalized TV experience through tie-ups
between OTT platforms & broadcasting networks
▪ OTT service providers, production houses &
broadcasting networks working in tandem
INNOVATIVE PRICING MODELS GROWING DEMAND FOR EXCLUSIVE CONTENT

7. SUSTAINING THE OTT PHENOMENON WITH TECHNOLOGY
Leveraging
Benefits of
the Cloud
Adoption of new-age
Networking
Technologies
Multi-CDN
Strategies
Innovation in Video
Compression
Technologies
Secure
Media Streaming
Experiences
Hyper-personalization
Techniques &
Real-time Engagement
SUSTAINING
THE OTT
PHENOMENON

8. SUSTAINING THE OTT PHENOMENON WITH TECHNOLOGY (1/3)
INNOVATION IN VIDEO
COMPRESSION TECHNOLOGIES
▪ AI for better video quality (VQ) at a
given BR & achieve a lower BR without
compromising VQ
▪ OPEX Optimization for streaming
companies to ensure a seamless,
buffer-free viewing experience
PROVIDING SECURE MEDIA
STREAMING EXPERIENCES
▪ Piracy leads to compromise in OTT
services revenues as premium content is
leaked
▪ Security features to mitigate illegal
streaming:
✓ Server-side security & firewall
✓ Authorization tokens
✓ DRM integrations
✓ Watermarking
✓ SSL certifications

9. MULTI-CDN STRATEGIES AS
THE WAY FORWARD
▪ Multi-CDN strategies by OTT companies
to deal with load, latency and quality
issues
▪ Multi CDN environment gives complete
control over real-time, in-session, and
per-segment delivery
LEVERAGING BENEFITS OF
THE CLOUD
▪ Increase the scalability & flexibility of
OTT applications through cloud
migration
▪ Cloud lowers the total cost of ownership
by removing dependency on on-site
data-centres
SUSTAINING THE OTT PHENOMENON WITH TECHNOLOGY (2/3)

10. ADOPTION OF NEW-AGE
NETWORKING TECHNOLOGIES
5G & MEC facilitating immersive content
experiences such as:
▪ Location-based experiences
▪ Multiplayer video game streaming
▪ AR/VR based virtual user experiences
▪ Collaborative viewing & working
▪ 4K video
▪ 360 live streaming
SUSTAINING THE OTT PHENOMENON WITH TECHNOLOGY (3/3)
HYPER-PERSONALIZATION &
REAL-TIME ENGAGEMENT
▪ Investment in ML, AI, Recommendation
Engines & Deep Video Analytics by OTT
players
▪ D2C Engagement with customers
through in-app messaging & bots
▪ Gamification of content to augment
content production activities

12. CONTACT US info@hsc.com
www.hsc.com

13. REFERENCES
• https://hsc.com/Blog/How-COVID-19-Has-Fueled-The-Global-OTT-Video-Business
• https://hsc.com/Blog/Sustaining-The-OTT-Phenomenon-With-Technology
• https://www.prnewswire.com/news-releases/global-over-the-top-ott-market-to-rise-and-hit-a-revenue-of-438-5-billion-during-the-covid-19-catastrophe--research-dive-
301092889.html
• https://www.businesswire.com/news/home/20200520005350/en/Global-OTT-Streaming-Market-2020-to-2030---COVID-19-Growth-and-Change---ResearchAndMarkets.com
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Brightcove-Q2-2020-Global-Video-Index
• https://www.marketwatch.com/press-release/global-over-the-top-ott-market-factors-influencing-the-growth-rate-in-media-entertainmentinteractive-media-services-sector-to-
reach-cagr-of-1161-2020-06-22?tesla=y
• https://www.businesswire.com/news/home/20200520005350/en/Global-OTT-Streaming-Market-2020-2030--
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