OTT Video Market Attractiveness Index Worldwide Country Rankings, Market Drivers And Positioning Strategies

Topics: Developed country, Broadband, Market Pages: 5 (1216 words) Published: March 20, 2014

The demand for video content in multiple formats (SD and HD), in multiple modes (VoD, linear and time-shift) and on multiple devices has emerged strongly in the past three to four years. OTT video has grown globally both as an alternative and as a complement to established pay-TV platforms. The growing investment in broadband infrastructure has at the same time opened up new opportunities to provide video over IP, not only in more advanced, developed economies but also in emerging markets. As a result, OTT video has become a truly global trend.

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Pyramid Research believes that OTT video services are set for significant growth worldwide and that in the long term there is a significant opportunity for pay-TV operators, telecom operators and other providers to profit from such services. For pay-TV operators, OTT video has become an important alternative to the established cable TV, DTH and IPTV platforms. OTT is so prominent that today the majority of pay-TV and telecom operators have an OTT strategy in place. The strength of the OTT video opportunity will vary depending on contextual factors, which must be weighted by different regions and countries globally.

In order to assess the strength of the OTT video opportunity in each market, Pyramid Research has developed especially for this study the proprietary OTT Video Market Attractiveness Index. The Index shows an overall level of market attractiveness that can be easily used to pinpoint how any market across the world fares on a variety of issues, from broadband infrastructure to pay-TV market dynamics, content licensing and regulatory frameworks.

The index is a composite of a total of three subindexes - OTT Readiness, OTT Intensity and Local Factors - that incorporate 11 country-level indicators ranging from broadband-connected households to pay-TV revenue and ease of doing business. The Index rankings amalgamate the scores of the three subindexes. The diversity of data used to construct the Index makes it possible to identify which markets globally can be most appealing to OTT providers, and to understand the socioeconomic strengths and weaknesses that boost or burden the OTT opportunity in each. The index results are grouped around a number of key themes, which are discussed and analyzed in order to explain how the OTT video opportunity is taking shape across different global markets.

The OTT Video Market Attractiveness Index and this Report are aimed at all companies - pay-TV operators, telecoms, pure play OTTs and investors - interested in identifying and assessing opportunities to deploy OTT video services.

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The Report is structured in four main parts:

Section 1 explains the methodology used in the Index, with a look at the countries covered, the composition of the index, the data sources used, the index scores and category distribution, as well as the subindex and indicator breakdown. •Section 2 is a strategic analysis of the results of the OTT Video Market Attractiveness Index. The analysis focuses on four key themes emerging from the results of the OTT Readiness, OTT

Intensity and Local Factors subindexes:

The importance of addressing large broadband markets to build scalable businesses. •The factors guiding the formation of online video audiences. •The drivers behind the revenue opportunity in different markets. •The role of content licensing and regulatory frameworks in the viability and success of OTT initiatives.

Section 3 is a strategic analysis of the emerging-markets results of the OTT Video Market Attractiveness Index. This section is a deep dive into the key drivers behind the uptake of OTT video services in emerging...
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