Connected TVs to hold 17% of OTT video market by 2016

A new report from French research firm IDATE predicts that North American consumers will continue to show the strongest preference for accessing over-the-top (OTT) video services on connected TVs, accounting for 54% of the market by 2016.

The report adds that the television sector is facing a “profound restructuring”, as players from formerly disparate sectors, such as TV, Internet and equipment vendors, converge on the market.

“In 2016, the VOD market for the TV will be dominated by over-the-top (OTT) offers,” says Jacques Bajon of IDATE. “In Europe, we estimate the global market for OTT video services on connected TVs at €2.4bn in 2016, with Europe and North America representing respectively 17% and 54%.

“Managed network players – cable and IPTV providers, for instance – are holding one of the key drivers for the Connected TV market development. They can continue their strategy of service distribution or open massively their networks to over-the-top services giving a boost to their commercial offers.”

Consumption of OTT video on connected TVs is expected to account for 17% of the total OTT video market, and 1% of the global fixed video services market. IDATE comments that conditions for the launch of new services were still not completely met in early 2012, setting the likely date for market take-off at 2015.

Paid services are believed likely to play a leading role in the development of connected TV services, and will represent 57% of the market for video services on connected TVs.

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