12704_SCTE_Broadband_Nov2016_COMPLETE_lowres

technical

However, for Europe to experience the same success as the US OTT market, it is critical to understand subscribers’ high-speed data usage behaviours. As evidenced in the US, a granular understanding will allow providers to make optimal business decisions about their future broadband offerings. The US experience According to the MTM study, the US premium OTT market has seen strong growth over the past years, largely driven by Netflix, You Tube, Amazon and Hulu. In 2014, the market was worth US$ 4bn, having grown at a CAGR of 36% between 2011 and 2014. By the close of 2014, 40.3% of US TV households were subscribing to at least one premium OTT service. However, SVOD revenues, around US$ 4bn, comprised only a relatively small share of the wider TV and video market, estimated at approximately US$ 185bn in 2014.

broadband infrastructure; consumer demand and willingness to pay for content; scale and wealth of the US market; the fact that the US is a leader in media, entertainment and technology and Netflix’s domestic success, which stimulates overall interest and investment in the OTT market. Successful operators, programmers, service providers and broadcasters in the United States who recognise the revenue potential of these market changes and OTT growth have adjusted their business models accordingly. However, to monetise these new opportunities, several factors must first be addressed to ensure this transformative success. Firstly, consumers' new viewing habits and high-speed data demands present not only technical issues, such as network congestion, but also pricing/budget challenges and customer satisfaction concerns. Therefore, many independent broadband providers have begun offering cost- effective solutions that respond to consumers’ evolving streaming behaviours, offer friendly data usage plans and

The rapid growth of premiumOTT services in the USmarket has been due to a number of factors, including wide availability of

…As of 2015, over 70% of Internet traffic in the US was streamed video and audio content…”

51

Vol. 38 No. 4 - November 2016 Issue