Shipments of OTT-Capable Devices Expected to Soar
With the demand for digital content reaching unprecedented highs, it is no surprise that consumers are increasingly looking to buy ‘over-the-top (OTT) enabled devices’.
According to a recent report by technology research organization iSuppli, sales of this kind of equipment are expected to rise to 1.7 billion in 2013. This would represent a 20 per cent increase on last year.
OTT-enabled devices essentially allow people to access online content via platforms such as Netflix and Hulu and they are clearly all the rage.
Analysts at iSuppli believe this is a sign of things to come, as the market is predicted to grow by a further 20 per cent in 2014.
This demonstrates how the media and entertainment industry is evolving.
Consumers are no longer forced to abide by TV broadcast schedules, as the rapid emergence of on-demand video has changed the way people watch their favourite movies and programmes.
With so many potential viewers using mobile devices, it is vital that companies look for new ways of monetizing digital content.
Aside from smartphones and tablets, the iSuppli study included all manner of OTT-capable products, such as set-top boxes, Blu-ray players, Internet-enabled TVs, digital media adapters like Apple TV or Roku and PCs.
Jordan Selburn, Senior Principal Analyst of Consumer Platforms for the company, said the growth of OTT devices is being driven by consumers, content owners and operators.
“Content owners want to expand the market for the films, music and videos they own,” he commented.
“Meanwhile, operators wish to use OTT in order to add value to their services and keep subscribers from cancelling TV subscriptions in favour of purely broadband connections.
“Consumers, for their part, desire access to a wide variety of media at the time and place of their own choosing.”
The iSuppli report showed that all segments of the OTT-enabled device market are expected to grow in the next 12 months, except for the handheld games section. Unsurprisingly, PCs (including tablets) and smartphones will account for the strongest increase.