LATEST FORECAST ESTIMATES 10% ANNUAL GROWTH OF OTT OVER FIVE YEARS14th Jun 2018
Over the past five years or so, there has been enormous growth in the online video marketing sector. The big platforms such as Netflix, YouTube and Facebook have seen the biggest increases, but across many others are also finding greater and growing demand for video content.
This does have its challenges, however, particularly with the sheer volume of material out there – one wonders how to make their voices heard in such a crowded environment. Whether they are a large brand or relatively unknown, both are spending big budgets on online video marketing.
There are also challenges presented by regulations, data privacy, online safety and many others, so brands are looking to the creation, adaptation and fine-tuning of online video marketing strategies in an attempt to successfully get their messages across.
Digital mediums overshadow traditional
According to a recent industry report, it has been predicted that OTT video will grow impressively over the next five years at a rate of 10.1% year-on-year. This is beaten only by VR, which is predicted to grow at 40.4%. However, this is expected as VR uptake is pretty low at the current time.
Inevitably, some would argue, the biggest losers in the report predictions are the traditional mediums of magazines and newspapers, being currently the only advertising medium showing any signs of decline.
There has been a notable rise in video streaming over subscription services, which has the biggest attraction of ad-free viewing, particularly amongst the older generation. Most video streaming is subscription free at the current time, but this is expected to change, and by 2022, the report predicts that more than 80% of domestic video views will be delivered by OTT services.
Online data protection and safety is a big concern for consumers, and the need for commercial contracts and subscriptions will lead to a surge in interest over the five-year period. Trust will be a deciding factor in many subscription choices and this will lead to companies changing their approach to video.
Significant players in OTT must maintain market share
At the moment, some of the biggest names in video are investing heavily in content production, such as Netflix and Amazon. The report suggests that Apple is going to be significant over the next five years with a rumoured $1 billion investment into content.
According to the report, it is exclusive content that will be one of the most critical factors for the expansion of the subscriber list and to maintain market share. With a convergence taking place too at the moment in the entertainment sector as a whole, all types of companies are realising that the traditional reach is dropping. With big data available, it is now becoming easier for businesses to approach their customers in a more direct way, and this evolution is helping to drive requirement.
The Streaming Company can help brands and agencies to plan and create high impact video. Contact us to find out more.