Study: Turning content dollars into audience - Page 15

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Nevertheless, investments in over-the-top (OTT) strategies by broadcasters, media companies,

publishers, and content owners are driving the demand for online video player (OVP) solutions.

OVPs enable studios to effectively focus on their core competency of content creation, while

handling the management, delivery, and monetization of live and on-demand video assets in a

fragmented device ecosystem9). Internet and media giants are all competing for subscribers and the

limited amount of user time spent on content consumption at home. Competing in such a vast

market worth billions of dollars, these companies are betting on a future where they can go direct-to-consumer and bypass traditional distribution platforms. As new players enter this market, current content libraries become more fragmented and rights exclusivity for hit content becomes a

challenge.

 

These ongoing changes are also reflected in the development of market shares in the individual

segments:

In 2014, broadcasting companies had the greatest total market share at $217 billion, while the streaming providers’ market capitalization totaled $172 billion*.  By 2021, the compound annual growth rates (CAGRs) (2014-2021) of the studied segments showed uneven growth. Streaming providers experienced a high CAGR of 19% with a total of $588 billion, whereas broadcasting

only had a 1% CAGR and reached a slightly higher level than 2014 – at $226 billion.

 

*Based on the market capitalization of the selected companies in the study sample as of the end of 2014. Please note: Not all streaming companies shown in this study already had a streaming offering in 2014.

However, some players operate in more than one phase of the value chain. For example, the players

in the FTA & broadcast and the digital and streaming segments produce some original content

themselves, while they simultaneously acquire licensed content from classic production

companies. In the linear segment, the large channels aggregate both original and

licensed content and distribute it via their own channels as well as via further subchannels.