The over-the-top (OTT) infers to the content delivered to the third party (end-user) via the internet. OTT is distinct with the purchasing or renting of video and audio content from the ISP (Internet service providers). The OTT service is widely used on tablets, laptops, and smartphones. It encompasses audio, images, videos, texts, and other media content. OTT is rapidly replacing text messaging services.
Availability of better broadband infrastructure, cheaper services, social adoption of OTT services, adoption of device based computing, and personalization of technology are expected to drive the market in the coming years. Moreover, cost efficiency, growing penetration of smart devices, and the demand for content is likely to impel market growth during the forecast period.
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However, lack of awareness about the OTT services and benefits in adoption difficulty and the acceptance of server-based computing can deter market growth. Diverse policies and regulations by the governments across national borders can condense market growth. The over-the-top communications services market is fragmented into content types, deployments, services, end-users, platforms, and geographies.
On the basis of content types, the OTT market is divided into voice over IP & video, video on demand (VoD), and Text and image messaging. Deployments include on-premise, cloud, and hybrid. OTT services contain, consulting, training &support, installation & maintenance, and managed services.
• The strategy of most, if not all, OTT messaging providers is to gain scale first and then monetize. All communications OTT apps with global aspirations are in a race to become the biggest platform in order to attract developers, which in turn should add more value to an offering.
• OTT players are transforming their communications apps into rich media platforms that serve as social networking hubs, offering a number of media services. Apps built on top of messaging enable users to solve broad problems. Messaging becomes a hub for consuming content and making transactions.
• LINE Messenger and WeChat are the few OTT communications players to demonstrate revenue. They can serve as a blueprints for other players.
• Messaging apps have significantly eroded carriers’ revenue from previous cash generators such as SMS services. The threat to carriers is increasing with the migration of voice calls from carriers to VoIP providers such as Skype and WhatsApp.
• WhatsApp and Facebook Messenger represent the most disruptive OTT communications players in the market. Monetization could be highly disruptive.
• A number of partnership opportunities are emerging as carriers are growing convinced that they can generate revenue from OTT communications. The challenge lies in business tie-ups and infrastructure capabilities.
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The Report is structured as follows:
Section 1: Market context. This section provides an overview of the OTT communications providers along with the competitive landscape and recent acquisitions and investments in OTT messaging app market. It also provides details on key OTT communications features and information on these communications apps are now evolving into powerful digital platforms.
Section 2: Emerging monetization strategies. Here we explore the various monetization strategies adopted by the major OTT communications companies globally.
Section 3: OTT communications case studies. The report includes six case studies: Facebook Messenger, Line, Viber, WeChat, Snapchat and WhatsApp. Each case study offers detailed analysis of the trajectory and approach taken by OTT service providers for generating revenues along with the progress made in recent years.
Section 4: Key findings and recommendations. We conclude with a summary of our findings on the emerging monetization paths adopted by various OTT service providers around the world, as well as specific recommendations for network carriers and OTT service providers looking to increase their revenue and develop partnerships in the OTT arena.
Reasons To Buy
1. Assess revenue models for OTT communications services and learn what works and what doesn’t.
2. Learn effective strategies for minimizing the adverse impact of OTT communications services on mobile carrier business
3. Examine the business case for OTT/carrier partnerships
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