Andrey Kolodyuk - How Smart TV/OTT changes the scape of VOD market
How will theappearance of Smart TV/OTT platformsinfluencethe VOD market<br />Andrey Kolodyuk<br />Founder ofDivan.TV<br />September 15, 2011<br />«Television as abusiness»<br />WithinKiev Media Week<br />
Definitions<br />According toWikipedia: <br />Smart TV (rus. Умное телевидение), or Connected TV - is a newtrendinintegration of Internet intoup-to-date TV sets and settopboxes, as well asintechnologicalsymbiosisbetweencomputers andTV sets / set topboxes, earlier named as "Connected TV", (do not confuse with Internet TV and Web TV). Newdevicessupporting Smart TV are primarytargeted tosupport ofentertainingmediainInternet, Internet-television, over the top content - OTT (by means ofsuchtechnology the content isdelivered toanyuser ofInternetdirectlythrough HTTP protocol), data-flowmedia-contentby request (engl. on-demand streaming media) andin a less degree - tosupporttraditionalmedia devices such as TV setsandreceivers ofgeneration before us. The concept Smart TV has appearedsimilarly to the concept Smart Phone, which, in its turn, has appeareddue tointegration of Internet, widgets andprogramapplicationsinup-to-datemobiletelephones.<br />
Mutualinterestof market<br />9 mlninUkraine (35mlninRussia.) have anaccess tocableandsatellitechannels.<br />ExistingIPTVproductsare limited bysmallnumber ofservicesandusers (total 1% of users in Ukraineand 2% - in Russia). <br />Average annualincrease offee television subscriber baseinworldin 2009-2014 is evaluatedwithin 4,7%. <br />researchesfromMultimediaResearchGroupconsider thatcontent sales volume inworldby means of OTT will count more than 11 billiondollarsin 2012. <br />InRussia,the sales volume ofSmart TV in 2014 will exceed 7 million, in Ukraine – 1 mln<br />
Forecast<br />In 2016 video services ОТТ (over-the-top) will generate $16.4 billion. <br />VOD servicesfromoperators offee TVwill bring $14.7 billion.<br />In 20165.9 billion of views are forecasted on VOD service.<br />http://www.adsmarket.com.ua/articles/research/1981/<br />
Historically: <br /><ul><li>There is no legalVoD in the country.
There areoperators working onNVOD.</li></ul>Actually, no cableoperatorin Ukrainehas rights withmajors. <br />By reason of: <br />- highentry cost (DRM, warranties);<br /><ul><li>impossibility ofoperator client base accounting by majors;
competitionwithillegalcontenton the part ofhomenetworks (Internetproviders). </li></li></ul><li>SupplyanddemandatVoD<br />Partiallythe demandis satisfied by: <br />- DVD purchase<br /><ul><li>visiting ofcinemas (in 2010 - 15 mln ofviewersbeginning from</li></ul> 30.11.2009 to 28.11 2010 $ 77.03 mln), <br /><ul><li> undisciplinedleasemarket (toUAN 20) </li></ul>Not all consumersloadcontent ininternet as only 10.7% of Ukrainianinternet-providersprefer to watch video on computer screen, but not on TV screen. Those who make loadings do itbecause of hopelessandabsent of alternative. <br />