The opportunity for OTT video to prosper in emerging markets is strong, and telecom operators that follow certain key steps can capitalise on the trend, according to a report from Pyramid Research.
Indeed, Pyramid Research identifies five factors that telcos must take into consideration when looking at the OTT opportunity in emerging markets: content, technology, partnerships, payments and regulations.
"In emerging markets, the OTT model is enabling telcos, pay-TV providers and media companies to respond to the demand for video streaming services on multiple viewing platforms, from laptops and mobile phones to the latest connected devices," said Daniele Tricarico, an analyst at Pyramid Research.
Changing conditions in the content licencing market, as well as new enabling broadband technologies, are opening up opportunities in many emerging markets, from Latin America to Central and Eastern Europe.
Faced with saturated content markets in mature economies, global studios, aggregators and TV channels are looking for new markets to licence their content. At the same time, the increasing availability of enabling technologies, such as CDNs and adaptive bitrate streaming, means that legacy infrastructure is no longer a deterrent to OTT video and that a consistent single-digit, megabit-per-second DSL connection is enough to support most video streaming activities, he notes.