The OTT market is booming. The spending on home entertainment has decreased in every area except online video over the past five years. This segment, however, is growing rapidly. Video streaming, for example, grew 72.4% in Q1 2018 compared to Q1 2019.
In 2018, 12% of U.S. households with cable subscriptions also “cut the cord”. Up to 27% of American homes will have cut the cable by the end of 2018 according to estimates.
The industry is huge and growing rapidly. Let’s look at the latest nakrutka developments in the OTT sector and some OTT trends that we should be watching for the next year.
The Top 6 OTT Industry Trends for 2022
This article will examine 6 key OTT industry trends. We will examine the impact of 5G on video and streaming, as well as the major players in the market for streaming solutions.
You’ll be more prepared for the future if you have some knowledge about current trends in the content market and industry highlights.
1. OTT continues to grow
In just a few years, the OTT industry has experienced a lot of growth and evolution. We are yet to reach the end.
Experts predict even greater growth for the industry over the next few years. By 2027, the OTT industry will be worth $1.039 trillion. This represents a substantial increase over the industry’s current value of $121.61 billion in 2019.
As more OTT streaming services are introduced to the market, and more viewers “cut the cord” with cable, the growth will continue.
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2. 5G is changing the game
5G internet is becoming a standard in urban areas. 5G will offer faster and more reliable internet speeds than the current-generation cellular network technology. Tests show that 5G is 100 times faster than 4G LTE networks.
IHS Markit noted that video streaming is the “killer app” of 5G. The biggest gains will be in video streaming. IHS predicts that 5G will be a boon for live streaming and event streaming. 5G’s benefits will be most evident when low latency is crucial.
This trend will be reflected in the success of OTT content publishers. If 5G offered better video quality on mobile devices, and reduced buffering, 29% would be willing to pay more.
There are limitations with 5G. Walls and other barriers can interfere with 5G signals. Carriers intend to avoid this by creating extensive networks with smaller network access points. When 5G isn’t working, users can rely on 4G LTE signals. This tech will still change the industry. Best alternatives to Grambegeni Like as My Tools Town, Topliker, AllSmo, IGautolike, Baobaz, Jet Followers, Ig Panel and Takipstar.
3. Immersive Streaming Technology Becomes Accessible
Streaming 4K video requires approximately 30 Mbps internet bandwidth. This is also related to the latest OTT trends. Live video streaming requires at least twice the bandwidth. This is not common for consumer-grade internet connections. The rise of 5G will allow for an explosion in streaming video quality, making it possible to stream 4K content.
4K video streaming will be possible with the additional bandwidth. In the next two years, expect 4K and VR (Virtual Reality), streaming to be the defining feature. These new connections will make 360 live streaming much easier. The streaming experience will become more immersive very soon.
The release of Facebook’s Oculus was a game-changer for immersive streaming. Previously, the cost of a virtual reality console could reach $2000. Oculus models start at $299. It is now much easier for consumers to purchase one of these models.
While VR technology is most popular with consumers at the moment, it slowly creeping into other industries. These trends will continue to grow as technology becomes easier to access.
4. Media giants rule the premium market
The premium OTT market is experiencing some seismic shifts. Netflix is finally taking off after many years of being the only major competitor.
Media giants such as Disney, HBO, and NBC released Disney+, HBO Go, and Peacock Premium over the past year. The Disney+ app was also downloaded 3.2 Million times within the first 24 hours.
There is also an OTT streaming service available from Apple TV+, and upcoming services from AT&T or Comcast. Another OTT trend is the rise in streaming services for sports. These streaming services are flooding the market in premium content and making it difficult for new services to compete against these established sports broadcasting giants.
The exact outcome of this new competition depends on the local market. Analysts predict that Disney+, HD Movies app, and Amazon Prime will be competing with Netflix. However, they won’t compete with other mass-market services like Amazon Prime.
These services and OTT trends are becoming more mainstream. OTT advertising is also becoming increasingly important in the online ads industry. As more people use these services, advertising revenues are on the rise.
5. Monetization of OTT services is encouraged by subscription fatigue
According to some estimates, over a third of professional broadcasters make their content available via subscription models. This is however having an adverse effect on the market to OTT pricing. You can also get OTT Platforms for free like Cinema HD APK, but most people opt to subscribe.
Apester’s global survey found that 60.1% are fed up with streaming services. A majority of people don’t know anything about the upcoming services and only 16.5% believe it makes sense for there to be so many services. Varun Duggirala (Co-founder and Content Chief of The Glitch) stated that “we have quickly come to the point where there are too many options in the OTT sector both locally and globally.”
This is called “subscription fatigue” and it’s becoming a growing problem. 60% of Americans watch subscription-based OTT videos every day. Many viewers are tired of having to subscribe to multiple services.
This is driving innovation in OTT video monetization. As an alternative to subscription monetization, providers are turning more towards advertising and pay-per-view monetization.
Bundling subscriptions together may be more popular to create channels. Already, Disney+ bundles their videos with National Geographic, ESPN, and other content producers. This trend will only increase in popularity.
6. Rapid COVID-19 Growth Shows Sustainability
The OTT industry experienced a rapid rise in demand in March 2020 as more people opted to stay home in Europe and the United States due to government-mandated lockdowns. This spike reached a plateau within weeks.
Disney+ was one of the services that tried to make it easy for their subscribers by releasing movies early on the platform. Frozen II was a notable early release. Frozen II was released as a way to help parents who were working from home, but may not have the time or resources for childcare.
Many OTT streaming series, including some Netflix Originals, received unprecedented attention and viewership.
Tiger King, a controversial series, is one example. This is just one example of a widespread phenomenon that would not have been as popular if people weren’t at home. There were also other series that had debuting casts that enjoyed great success.
COVID-19 also saw the emergence of technology that allows people to view movies together via video chat. These platforms allow users to stream simultaneously. These platforms allow users to stream in sync even though it is safer to be physically far away.
In this article, You know about 6 Trends of OTT streaming you need to watch out for in 2022. We discussed all the points briefly. don’t forget to mention your favorite part of the blog in the comments.