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Category: Media Technologies

Netflix: Coronavirus Cements The Company as Untouchable

Last week in Forbes, I explained why Netflix will remain the leader in the OTT market. The main reason is that it is a global media company, whereas the majority of OTT providers are domestic. The company outperforms globally with 70-87% of subscription OTT video service users in European English-speaking countries using the service and 55-64% of non-English speaking countries. When analysts incorrectly believed Disney Plus and Apple Plus were “Netflix killers,” I had pointed out at that time that they were being myopic as to Netflix’s global lead.  Overall, OTT video is projected to grow to 6.4% of emerging…

Fast Growth in 4K Televisions and UHD Content Requires Premium Content Protection

Ultra HD televisions are one of the fastest-growing segments in the history of consumer electronics. Within the first three years of shipments, 4K/UHD overshadowed HDTVs by nearly 4x with 16 million units shipped compared to 4.2 million units1. Since then, rapid penetration is occurring globally with 35 percent of all U.S. households forecast to have a UHD television by 2019, followed by the United Kingdom with 31 percent, 25 percent in the European Union, and 24 percent in China. Global units shipped reached 82 million in 2017 up from 53 million in 2016. . The global 4K TV market is…

OTT is Eating Cable: Here’s How to Protect Streaming and On-Demand Video

Viewership of live-linear over-the-top (OTT) video is expected to surpass traditional broadcast TV1 within the next five years. The global OTT devices and services market will reach USD 165 billion by 2025 representing a massive increase over the decade from $29 billion in 2015 due to mobile devices and smart TVs2. OTT revenue will grow from $46.5 billion in 2017 to $88.4 billion in 20223. Subscription video-on-demand (VOD) comprises 40 percent of the OTT market with the majority of the revenue coming from the United States. By 2022, the SVOD penetration will be 132% of US TV households by 2022 with…

Here’s Why Roku Stock Will Surpass $100 In Next Two Years

Roku’s stock (ROKU) is getting a lot of attention after it reported stellar second-quarter results due to 57% year-over-year revenue growth to $156.8 million beating the analyst forecast of $141 million. Compare this to 37% year-over-year revenue growth in Q1. However, as I stated in my Q1 article, the platform revenue is where Roku will continue to see a majority of the gains. The video streaming platform revenue was up 96% during the period to $90.3 million with player revenue up 24% to $66.5 million. Some of the analysis below is taken from an article I wrote last quarter on Seeking Alpha. The…

Live Sports OTT: The Coveted Markets of North America and Europe

As the ultimate live experience, sports are a driving force behind many subscribers’ decisions to choose between cable TV and OTT. Every time a household cancels cable service, ESPN loses about $8 a month1. As streaming video has continued to rise, ESPN has seen a decline from 100 million households in 2011 to 87 million households in 2017. Which is why it’s not surprising the Walt Disney Co., the company that owns ESPN, is offering an OTT video streaming edition for ESPN fans at $4.99 per month for the app. Coveted Live Sports OTT Markets: North America & Europe For…

New Trends in On-the-Go Entertainment for Flights and Cars

Smartphones have popularized the concept of on-the-go entertainment with users now spending over five hours per day on their mobile device. This steady demand is great for businesses as long as this usage has reliable 3G or 4G broadband, or WiFi access. Data efficiency decreases the farther one travels from metropolitan areas, whether that be by plane or automobile, whereas the demand for entertainment is constant. In-flight entertainment systems and broadband are popular with 70 percent of survey respondents citing they would be willing to pay 7 USD for connectivity[1]. Total revenue from these passenger connectivity services will reach $5.4 billion by…