J’son & Partners Consulting presents brief results of the research: RUSSIAN OTT VIDEO SERVICES MARKET, RESULTS OF 1H2014, FORECAST TILL 2017.
GENERAL MARKET DESCRIPTION
OTT video services are gaining popularity together with traditional forms of content distribution. Wide penetration of these services in Russia and the world is due to the services’ simplicity, mobility and quality of provided services.
OTT (Over the Top) – delivery of video signal technology of professional content to users’ STB (computer, mobile phone) via Internet without direct contact to telecom operator.
OTT video services market includes 4 key segments:
- VOD (video on demand) - classical format of service, user receives an access to see the content during a limited or unlimited timeframe by renting the mentioned content;
- sVOD (subscription video on demand) - provision of service via subscription, user receives an access to the content library for certain time without restriction on the number of views for payment;
- aVOD (advertising video on demand) - freemium service, content is being broadcasted with a certain amount of advertising messages;
- EST (electronic sell through) – is a purchase of digital copy of content by user or timeless rent of content.
RUSSIAN OTT VIDEO SERVICES MARKET
The volume of Russian market is being calculated on the bases of OTT video services subscriber base – number of unique viewers, who watch video in the Internet. According to J’son & Partners Consulting there are 63.7 mln unique users in Russia in 1H2014, penetration rate was 45%.
According to J’son & Partners Consulting Russian audience of OTT video services will hit 100 mln unique users and penetration rate of 70% by 2017.
Russian OTT video services market has launched the stage of expansive growth and by the end of 2014 market volume will be 4.8 bln RUB according to J’son & Partners Consulting.
It is expected that market volume will grow till 11.4 bln RUB by the end of 2017. Average market growth rate will be 33.1% in 2014 – 2017.
aVOD (advertising model) – is one of the most popular monetization model on the Russian market for OTT video services, results of 2014 – this technology generated 73% of all revenues.
Despite the fact that OTT services segment is still on the basic development stage, some market leaders have already fasten their position on Russian market.
TOP 3 market leaders of OTT video services are IVI, Okko (Play) and Tvigle.
SEGMENT OF OPERATOR OTT VIDEO SERVICES
OTT is developing in a Pay TV very fast and new segment of operator OTT market will possibly be formed soon. In terms of this research, OTT operators are companies, which had launched service in commercial use and provide the service of Pay TV via OTT device.
OTT service belongs to Pay TV market if it meets the following criteria:
There is always operators device (STB) for service provision;
The provision of paid services on subscription.
Operator OTT Video Services Subscribers in Pay TV - theusers of provided services by operators, which rebroadcast TV channels via operators STB on unmanageable network.
Nemo TV has provided operator OTT services on the Russian market in 1H2014, company also offers services video on demand, such as online cinema.
RATING OF OTT VIDEO SERVICES
IVI is the leader by monthly number of subscribers and by revenue among online cinemas and leaders of OTT video services. By content, online cinema Megogo has the first place.
OTT video services traffic quality is being evaluated by the number of visit refuses, the least number of refuses has TNT-online cinema.
Tvigle service took second place by revenue and fourth one by number of unique content among advertising online cinemas.
During the research, J'son & Partners Consulting’s consultants have surveyed the representatives of the leading companies, which operate in OTT video services industry and asked about their opinion regarding the key trends for the coming years.
– What are the key trends for the Russian OTT video services market in 2015-2016?
Detailed results of the research are presented in the full version of the Report: Atlas of RUSSIAN OTT video services market, 2011-2017
3. Global OTT video services market, major indices 2011- 2017 and place of Russian market
3.1. Major indices of the global OTT market, 2011- 2017 and place of Russian market
3.2. Peculiarities of viewing on the global OTT market, role of UGC-content
3.2.1. Video viewing by categories of devices
3.2.2. Genre preferences in the sphere of video viewing
3.2.3. The role of UGC-content on OTT market
3.3. Key market players on global OTT market
188.8.131.52. FiOS On Demand
184.108.40.206. Redbox Instant
220.127.116.11. Sky Go
18.104.22.168. NOW TV
3.4. Characteristics of the key market players’ strategies on the global OTT market
4. Russian OTT market
4.1. Quantitative indices of the industry, 2012-2017, pcs. and $ (paid and advertising models)
4.2. Market structure by business-models, 2012-2017
4.3. Rating of market leaders by audience indices and revenue, 2013
4.4. Peculiarities of viewing on OTT market, 2013
4.5. Key tendencies of market development
4.5.1. In the sphere of market development
4.5.2. In the sphere of devices’ distribution
4.5.3. In the sphere of content and communication with users
4.6. Profiles of the main operators (Top 10) of OTT market, 2013
4.7. SWOT-analysis of market development
5. Peculiarities of OTT market development in CIS countries
6. New devices of OTT-viewing in Russia
6.1. Smart TV – indices of sales and market role, 2012 – 2017
6.2. STB – indices of sales and potential of ОТТ STB development, 2012 – 2017
6.3. Smartphones – indices of sales and potential of development, 2012 – 2017
6.4. Tablets – indices of sales and potential of development, 2012 – 2017
7. The influence of OTT market on production and content distribution in Russia
9. List of companies, mentioned in the Report
List of illustrations
Illustration 1. Global market of digital content by segments, bln.USD, 2011-2017F
Illustration 2. Structure of global market of digital content by segments, 2011-2017F
Illustration 3. Global OTT market, bln USD, 2011-2017F
Illustration 4. Global OTT market, mln HHs, 2011-2017F
Illustration 5. Global OTT market by segment, bln.USD, 2011-2017F
Illustration 6. Global OTT market by models of monetization, 2012-2017F
Illustration 7. Digital Content market structure by countries, 2013
Illustration 8. Digital Content market structure by segments in different countries, bln USD, 2013
Illustration 9. Share of video viewing on different devices by duration, 1Q2014
Illustration 10. Video viewing of UGC-content by devices
Illustration 11. Subscription Prime by Amazon
Illustration 12. Netflix audience dynamics, mln.people, 2011-2013
Illustration 13. % of USA population who use or subscribed on Netflix
Illustration 14. Cross-platform of Redbox Instant service
Illustration 15. Revenue dynamics of Hulu 2010-2013E, bln USD
Illustration 16. Subscription on Hulu Plus by Hulu
Illustration 17. Youtube Movies service
Illustration 18. Recommended platforms for use of YouTube service
Illustration 19. Subscription on Sky Movies
Illustration 20. Subscribers’ base and OTT service penetration, mln people, 2011-2017F
Illustration 21. Russian OTT market, mln USD, 2011-2017F
Illustration 22. Russian OTT market, mln RUB, 2011-2017F
Illustration 23. Structure of ОТТ market by revenue and share of technologies, 1H2014
Illustration 24. Market structure by revenue and share of technologies, 2011-2017
Illustration 25. Structure of ОТТ market by revenue and share of key market players, 1H2014
Illustration 26. Viewing structure on OTT market by type of devices, 1H2014
Illustration 27. Viewing structure on OTT market by type of devices by advertising model, 1H2014
Illustration 28. Number of content pcs. by OTT providers, thousand, 1H2014
Illustration 29. Distribution of paid ОТТ and VOD/PPV content by share quality in $ on the Russian market, 2013.
Illustration 30. Smart TV market volume, mln pcs 2013, 2017
Illustration 31. Dynamics of STB market, thousand pcs, 2012-2017
Illustration 32. Dynamics of STB market, bln RUB, 2012-2017
Illustration 33. Structure of STB sales, pcs, 2012-2017
Illustration 34. Dynamics of Smartphone market, mln pcs, 2012-2017
Illustration 35. Dynamics of Smartphone market, bln RUB, 2012-2017
Illustration 36. Dynamics of Smartphone market, mln pcs, 2012-2017
List of tables
Table 1. Frequency of video viewing on different devices
Table 2. Genre preferences by devices
Table 3. Key market players of global OTT market
Table 4. Advertising on main page (CPD, cost per day)
Table 5. Banners and text-graphic advertising (only Desktop platform)
Table 6. Video advertising (CPM, cost per 1000 views)
Table 7. Rating of market leaders by revenue and audience indices*, 1H2014
Table8. Traffic quality and rating of market leaders*, 1H2014
Table 9. The number of unique content and rating of market leaders, 1H2014
Table 10. Revenues and rating of market leaders, 1H2014
Table 11. Revenues and rating of market leaders – paid models of monetization, 1H2014
Table 12. Overview of online-cinema content, 1H2014
Table 13. Availability of 3D and HD-content in libraries of online-cinemas, 1H2014
Table 14. Strategies of content formation by OTT services in Russia, June 2014
Table 15. Platforms overview that supported by online-cinemas, 1H2014
Table. 16. General SWOT-analysis of the market (IPTV/ OTT/MOBILE TV)
Table 17. Stages of the distribution policy implementation
This Information Note is Prepared by J’son & Partners Consulting, We strive to provide factual and prognostic data that fully reflect the situation and are available to us before issuing the material. J’son & Partners Consulting reserves the right to revise the data after publication of new official information by the market players.