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MTM: Only way is up for US OTT prices

MTM: Only way is up for US OTT prices

MTM: Only way is up for US OTT prices

Prices for premium OTT offerings are set to increase, both from existing providers and new entrants, according to new research released by Vindicia and Ooyala.

This is already proving to be true with Netflix’s $11.99 per month family plan and HBO’s $14.99 per month plan, but the research suggests that consumer demand for premium OTT services is likely to increase regardless, as the range and quality of services improves and as viewing continues to shift towards non-linear services.

The study, conducted by MTM, expects ongoing strong overall  OTT growth, mainly as a result of three factors: significant investment, a proliferation of services, and intense competition.

“By 2018, the US OTT market will exceed $8 billion in revenue, driven by new market entrants and growing consumer demand,” comments Caitlin Spaan, vice president of marketing, Ooyala. “While large MVPDs own large portions of OTT audience today, industry experts predict 15-20 specialist services will grab subscribers’ attention.”

To find out more about what the rise of premium OTT could mean for the US consumer, read last week’s insightful interview with Ipsos analyst and TV Xperience keynote Gavin Bridge here.

 

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