OTT streaming platforms like Netflix and Amazon Prime Video have gained immense popularity, with over 182 million subscribers in the U.S. as of 2019, driven by a rise in hybrid monetization models and demand for original content. The competition among platforms is increasing, leading to content fragmentation and a shift towards mobile as the primary consumption channel for video content. Innovations and new offerings continue to enhance customer engagement as viewers seek convenient access to diverse content.

2. Popularity of OTT Streaming Platforms
● Netflix, Amazon Prime Video, Hulu, HBO, Disney+, etc. gives unlimited access
to high quality content. As of 2019, there are over 182 million OTT subscribers
in the United States.
● To enhance customer engagement, OTT video streaming platforms are coming
out with new and innovative product offerings.
Fact:
According to comScore, around 50 million households across the world, today have
OTT video, which they consume in the same time-of-day pattern as traditional TV
viewers.”

3. Trend 1: Hybrid Monetization Models
There are three primary monetization models that OTT streaming platforms operate
on –
● Subscription video on demand (SVOD) like Netflix.
● Advertising (or ad-based) video on demand (AVOD).
● Transactional video on demand (TVOD) like iTunes.
Fact:
“In March 2019, a survey conducted by PwC on 1,000 adult video-on-demand viewers in the US
revealed that more than half of the content that the respondents streamed was licensed, while 44%
of it was original to the platform it was viewed on.”

4. The year 2018 saw tremendous growth for SVOD platforms in terms of the global
audience demand for original content.
Analysts have forecast that the Netflix 2019 content budget could be as high as $15
billion. Original content is here to stay and shall remain king in 2019 and much
beyond, period.
Fact:
“According to Parrot Analytics’ Global Television Demand Report 2018, SVOD platforms in
combined released 319 new digital original series in 2018.
Trend 2: Rising Demand for Digital Originals

5. Trend 3: Intensive Competition Leading to
Content Fragmentation
Much of the content that you find today on Netflix or Hulu is about to become
exclusive to other rival OTT streaming platforms.
The bonhomie between OTT market players should primarily focus on white-
labeled or co-branded offerings
Fact:
“The Content Discovery study by PwC has found that video content discovery is a bigger pain
point and source of frustration for consumers than finding other types of media.”

6. Trend 3: Mobile Surpassing TV as the Primary
Content Consumption Channel
Mobile is fast emerging as the dominant growth channel for audio and video
content distribution.
For example, a particular individual who watches Game of Thrones on a regular
TV screen while at home streams video content from YouTube on a smartphone
while travelling.
Fact:
“According to a report from eMarketer, over 75% of worldwide video consumption occurs on
mobile devices.

7. Thank You
For any query/concern, email us at ask@
kelltontech.com
For Latest industry news/updates,
visit https://www.kelltontech.com/kellton-
tech-blog