New Study Commissioned by Vindicia Sees Massive Global Growth of Premium OTT Subscription Revenue
SAN MATEO, Calif.--(BUSINESS WIRE)--Sep 13, 2018--Vindicia, an Amdocs company (NASDAQ: DOX) and a leader in business-to-consumer subscription management solutions, today released a new research report that explores the prospects and development of premium OTT services across four regions: Western Europe, USA, Latin America and Asia Pacific. The research, conducted by MTM on behalf of Vindicia, found that premium OTT subscription revenue will continue to rise quickly across all regions and that growth will be fueled by local, live and linear content, as well as by easier payment solutions.
The report titled: “The Prospects for Premium OTT”, reveals that premium OTT in Western Europe will grow strongly in the next three years, as connected consumers embrace not only services from global OTT players, but also new subscription services from local and regional broadcasters, and direct-to-consumer services from content brands. The UK will remain the largest market for premium OTT in Western Europe, with revenues forecast to rise from US$1.18 billion in 2017 to US$1.63 billion by 2020.
In the U.S., premium OTT subscription revenue will surge past US$21.2 billion by 2020, up from $16.4 billion in 2017. While Netflix, Amazon and Hulu will continue to dominate, direct-to-consumer offerings from the likes of Disney, specialist services such as Crunchyroll and WWE, and live sports delivered via OTT will also flourish.
Revenues from premium OTT services will also grow rapidly in Asia Pacific, albeit from a low base in some cases. Thailand, for instance, will see revenues rise from US$66 million in 2017 to US$108 million in 2020, while Indonesia will expand from US$26 million to US$72 million in the same period. The market for premium OTT services in Asia Pacific will be driven by pan-regional players, such as HOOQ, Viu and iflix, that focus on local content and are priced for local audiences.
The premium OTT market in Australia is one of the largest in the Asia Pacific region and will continue to see considerable growth, with revenues reaching US$420 million by 2020, up from $280 million in 2017, the study found. Netflix will be the dominant subscription service in Australia for the foreseeable future.
In Latin America, improved broadband connectivity is driving growth in premium OTT subscriptions, where local content offerings are bundled with internet access. However, greater connectivity is also encouraging content piracy. Mexico will become the largest market in Latin America for premium OTT services by 2020, with revenues forecast to reach US$678 million, up from US$410 million in 2017, according to the report.
“As revenues for premium OTT services increase in all regions and the global players continue to dominate, a common thread to this research is that consumers will nevertheless choose to subscribe to niche content when the price and the experience are right,” said Kris Nagel, Head of Vindicia, an Amdocs company. “As part of that experience, consumers will demand frictionless payment solutions. Premium OTT services that offer local, live and linear content, and that can also seamlessly integrate with payment platforms to make payments almost invisible to the user, can expect strong subscription growth going forward.”
“The demand for high-quality paid-for video services delivered via OTT is growing in all regions of the world,” added Nick Thomas, Associate Director at MTM and author of the report. “While it is important to understand local and regional trends, industry executives in all markets now recognize that exclusive content, appropriate pricing and seamless payment solutions are all key to acquiring new subscribers.”
MTM is an international research and strategy consulting firm, specializing in media, technology and advertising. MTM helps clients around the world understand and respond to digitally-driven change, providing award-winning consumer research, industry analysis, strategic advice, and support for new ventures, business development, and organizational change and transformation. For more information, please visit www.mtmlondon.com.
Vindicia, an Amdocs company, offers comprehensive subscription management solutions that help businesses acquire and retain more customers. Providing much more than just a billing and payments system, the company’s SaaS-based subscription management platform combines big data analysis, strategic consulting and proprietary retention technology. Vindicia provides its clients with more recurring revenue, more customer data, better insights, and greater value throughout the entire subscriber lifecycle. That’s why they call us the Subscription People. To learn more visit www.vindicia.com.
Amdocs is a leading software and services provider to communications and media companies of all sizes, accelerating the industry’s dynamic and continuous digital transformation. With a rich set of innovative solutions, long-term business relationships with 350 communications and media providers, and technology and distribution ties to 600 content creators, Amdocs delivers business improvements to drive growth. Amdocs and its 25,000 employees serve customers in over 85 countries. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $3.9 billion in fiscal 2017. For more information, visit Amdocs at www.amdocs.com
Amdocs’ Forward-Looking Statement
This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs’ growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs’ ability to grow in the business markets that it serves, Amdocs’ ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company’s products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in the Company’s filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2017 filed on December 11, 2017 and our quarterly 6-K form furnished on February 12, May 21 and August 13, 2018.
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CONTACT: Finn Partners for Vindicia
Ricca Silverio, +1 415-348-2724
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