Examining Factors Influencing Early Paid Over-The-Top Video Streaming Market Growth: A Cross-Country Empirical Study

Sangwon Lee,Seonmi Lee,Yoonjae Nam,Hyemin Joo

doi:10.3390/su13105702

Sangwon Lee, Seonmi Lee + Show 2 more

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https://doi.org/10.3390/su13105702

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Journal: Sustainability	Publication Date: May 19, 2021
Citations: 13	License type: CC BY 4.0

Affiliation: Kyung Hee University, Korea Telecom (South Korea)

Abstract

This study examines the factors influencing early paid Over-The-Top (OTT) video streaming market growth in 50 countries. The results of the panel data analysis suggest that Netflix’s market entry, traditional pay TV market size, broadband infrastructure, and OTT platform competition contribute to the early market growth of paid OTT video streaming services, such as subscription video-on-demand (SVOD) services. The results also reveal that the traditional pay TV subscription market and the paid OTT video streaming market initially grow together in many countries. However, the findings also reveal a negative association between the market entry of Netflix and the subscription revenue growth rate of traditional pay TV services. The results of this study suggest industry and policy implications for paid OTT video streaming market growth and the sustainable development of the media industry.

Highlights

Mónica Herrero andThe rapid diffusion of broadband technologies and continuous innovations in the media and information and communication technologies (ICT) industries have enabled consumers to access video content anytime and anywhere via multiple devices, including computers, smartphones, tablets, gaming consoles, television sets, and other equipment connected to the Internet [1]
OTT is recognized as the generation of media that will bring innovation and efficiency with the proliferation of digital transformation
It was estimated that internet video subscription revenues have increased from $12.5 billion in 2014 to $45.26 billion in 2019, including subscription video-on-demand (SVOD) and transactional videoon-demand (TVOD) services

Summary

Introduction

The rapid diffusion of broadband technologies and continuous innovations in the media and information and communication technologies (ICT) industries have enabled consumers to access video content anytime and anywhere via multiple devices, including computers, smartphones, tablets, gaming consoles, television sets, and other equipment connected to the Internet [1]. As evidence of this trend, internet-based video services, such as Over-The-Top (OTT)—the most recent and potentially disruptive innovation in the media industry—have shown rapid growth in many countries.

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