IDATE, a French research firm, have predicted that advertising revenue from connected TV will be mainly generated from premium long-form programming, while consumption of short programs and of UGC content is likely to remain largely limited to PCs, smartphones and tablets. IDATE have also predicted that connected TVs will hold 16% of the OTT market by 2016 and they estimate that the global market of services on connected TVs will reach €2.4 billion in 2016, representing 16.7% of the OTT video market.
IDATE say the figures correspond with their overall analysis of how connected TV services are being deployed, which concluded that the new services simply aren’t developed enough for the market to properly take off, which they think will happen in 2015.
OTT to Dominate VoD
Jacques Bajon, Head of IDATE’s Video Distribution Practice, said “In 2016, the VoD market for the TV will be dominated by Over-The-Top (OTT) offers. In Europe, we estimate the global market for OTT video services on connected TVs at EUR 2.4 billion in 2016, with Europe and North America representing respectively 17% and 54%.”
“Managed network players – cable and IPTV providers, for instance – are holding one of the key drivers for the Connected TV market development. They can continue their strategy of service distribution or open massively their networks to over-the-top services giving a boost to their commercial offers,” he added.