Who's down with OTT? 2014.

Tue, 06/29/2010 - 8:10am
Traci Patterson

U.S. broadband households that view over-the-top video will increase from the 38 million recorded in 2009 to 81 million by 2014.

As for OTT video revenue, it will more than quadruple by 2014 as it approaches $20 billion, according to new research from In-Stat.

"The U.S. Market for OTT Video Services" found that more than one-third of 18- to 24-year-old adult households stream full-length OTT video on a regular basis, compared with less than 10 percent of adult households in the over-45 age brackets.

And companies such as Netflix, Blockbuster, Wal-Mart, Best Buy, YouTube and Hulu are all vying for a piece of the action. A primary success criteria for OTT video services is access to unique, first-run TV and movie content, In-Stat says.

"OTT video is happening now, with [more than] 37 million broadband households in the U.S. downloading online video content," says Keith Nissen, an In-Stat analyst. "The growing adoption of both OTT video consumption and Web-enabled consumer electronics promises to further expand the opportunity for content producers and OTT retailers."

According to research from The Diffusion Group released earlier this year, more than 360 million households worldwide will have the right equipment in place by 2014 to view over-the-top videos, with half of that number actively receiving OTT services.

And a recent report released by Amdocs found that the threat of over-the-top Internet providers turning service providers' broadband networks into "dumb pipes" is overstated.

More Broadband Direct 6/29/10:

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•  Zoom Telephonics' D3 modem shipping to retail stores
•  Time Warner Cable to close Wilmington call center
•  Shaw selects Nokia Siemens for wireless network
•  IEEE delivers 1815 DNP3 standard
•  Phoenix NAP counts 10 customers for datacenter
•  Who's down with OTT? 2014.
•  Vt. board rejects FairPoint workout
•  iSuppli: iPhone 4 costs $187.51

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