September 26, 2017

OTT Services Took 100 bln $

The business model of interactive digital television built on the basis of OTT technology offers individuals the facility of real-time audio and video delivery from content aggregators without the participation and control of ISP providers. Over the Top (OTT) is a technology in which content is delivered to any user connected to the Internet directly, via the HTTP protocol.

OTT Services

OTT services provide continuous viewing to the individual and protection of content to the provider. At the same time, the OTT service provider guarantees the support of a certain list of subscriber devices (STBs, prefixes), which gives it the full right to monetize it (by advertising model, by subscription or through a pay per view model).

Whatever the operators claim, stating that OTT services do not pose a big threat to telecoms networks, it is because of them that telecom companies lost $100 billion in revenues last year. Such an assessment of the impact of OTT on traditional mobile business is provided by the research agency, Juniper Research, emphasizing that this is 12% of total annual industry revenue. The largest OTT messenger service facilitators already generate more messages than SMS.

The leader is WhatsApp. Through it three times more messages are transmitted per day than the total SMS volume sent all over the world.

Moreover, with the growing popularity of group chats, operators in the future will be losing greater amounts of revenue streams. It is not a simple transfer of billions of dollars flowing from one pocket to another. That is because OTT messengers do not make money on messaging volumes. They simply disappear, which affects the size of the entire telecoms market.
However, analysts at Juniper Research named four areas that operators can compensate for revenue losses from OTT:

  • Big data and analytics packages for both consumer and IoT devices
  • Carrier billing payment options
  • Mobile money and identity services

Another potential source of revenue for operators can be mobile video. Not in itself, because the production of quality entertainment content is expensive and is a risky business. Many video services stumble on the limited access of subscribers to video via mobile networks, it’s simply too expensive. Operators can receive additional revenue from a partnership with these video services. It is possible when for a fee the subscriber will receive unlimited traffic to view the content. American operators widely use the technology.

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