A study by MTM, a UK-based research and strategy consultancy firm expects the premium Over-the-Top(OTT) market for the UK, the Netherlands and Germany to grow at 80% over the next three years. The study was jointly commissioned by Vindicia, a leader in enterprise-class subscription billing, and Ooyala, the leading innovator in video streaming, personalization and analytics and was based on 30 OTT service providers in the pan-European region.
According to a joint statement on the study, the premium OTT market in UK is expected to grow from £110-130 million in 2013 to £390 million in 2017, while the Dutch market is expected to grow from €15-20 million in 2013 to €190 million in 2017. However, Germany spots a slower growth rate, increasing from €30-35 million in 2013 to only €117 million in 2017 on the back of lower broadband penetration in this country .
The study revealed that there will be significant opportunities for content providers to increase monetization of video content, in the form of transactional services, ad-supported offerings and hybrid bundles, in addition to the subscription business model. The respondents also highlighted the barriers to entry for premium OTT providers which include exclusivity of high-quality and high-appeal content, consumer consciousness and cultural factors.