12704_SCTE_Broadband_Nov2016_COMPLETE_lowres

technical

US Lessons Learned: By leveraging the network and user behaviour knowledge with cost- effective, cloud-based tools and solutions, European providers are in a unique position to not only provide an optimal user experience but actually monetise the market expansion. By OpenVault OTT, Data Usage Growth and Monetisation Results

20 new specialist OTT providers acquiring 100,000 or more paying subscribers by 2018, with even more attracting smaller numbers of subscribers. Over the Top meets 4K As OTT video consumption ramps up, consumer behaviour and technology will continue to expand and evolve accordingly. To keep pace with and, more importantly, optimise the ever- expanding OTT universe, the industry must anticipate market changes, overcome technical challenges and create flexible business models that monetise new opportunities that assure both a quality experience for the subscriber and profitability for the operator. As expected, the emergence of OTT in Europe is following a similar path to the US experience and, despite regulatory issues and technology challenges, the European OTT market is also expected to grow exponentially and present great business opportunities over the course of the next few years in particular.

Introduction In the United States, demand for Over The Top (OTT) video is at an all-time high with no signs of slowing down. In a culture that values and expects the delivery of massive amounts of content at anytime, anywhere and on any device, the demand for OTT content will continue to expand for the foreseeable future. In fact, industry experts predict that OTT video will and ultimately become a mainstream method for viewing video content. The “TV Anywhere” dynamic is a current expectation, regardless of age or geography. For example, in a recent study conducted by MTM, an independent London-based research and strategy group, domestic (US) premium OTT revenues are expected to grow from US$ 4bn in 2014 to between US$ 8-12bn in 2018. Niche services, complementing more generalist Pay-TV or OTT offerings, are also expected to proliferate with up to 15-

50

Vol. 38 No. 4 - November 2016 Issue