Blending OTT, Pay TV to Lead to 'Indistinguishable' Package, Says ABI
Traditional pay-TV offerings will evolve to become “indistinguishable from a pure” over-the-top package of services, said ABI Research analyst Michael Inouye. Though cord cutting is often seen as “a consequence of expanding OTT consumption,” the market dynamics “are more complex,”…
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Inouye said Tuesday, noting the pay-TV industry embraced OTT “as a complement and value-additive.” The OTT video market will top $200 billion by 2024, 90 percent fueled by subscription and advertising revenue, ABI said. The remainder will include digital purchases, electronic sell-through, rentals and transactional video on demand, Inouye emailed us. Disney Plus and Apple Plus, with aggressive pricing and packaging, plus continued expansion by long-term players in the subscription VOD market, are pushing the segment to new highs, ABI said. There are 700 million-plus OTT SVOD subscriptions and 1 billion for pay TV market.