The global market has seen substantial penetration of mobile devices over the past few years and that, alongside the increased usage and development of cloud-based services, has only boosted the astonishing growth of Over-the-top service (OTT) adoption in developing countries. Add to this the widening access to high-speed internet, and these factors have created the perfect storm for continued OTT growth.
Over the past five years alone, there’s been an increase of mobile data traffic at a rate of 58% in Asia Pacific; 72% in the Middle East and Africa; and 59% in Latin America. Meanwhile, as more users have begun using smart devices, the consumption of online video content grew by a staggering rate of 69% in 2019. Amidst the covid-19 pandemic, the numbers grew even further.
By 2025, it’s expected that telecommunication companies who service emerging markets will be incorporating another one billion customers, all of whom will demand the latest in OTT services tailored to their needs. Meanwhile, these customers will be vying for new content offerings that exceed their expectations — all of which represents a profitable opportunity that telcos should be pursuing.
When looking at these growing markets, India is actually the fastest-growing major economy in regards to OTT adoption. They top the list when it comes to the fastest-growing OTT demand, with more than three dozen OTT providers already. Hotstar is their most popular platform, with over 150 million active users as of 2018. They’re an excellent example of just how successful proactive telcos can be when they jump on growth opportunities.
Every company knows about the first mover advantage (FMA) and the other perks that come along with breaking into emerging and growing markets, but when it comes to categories like this, the business impacts can simply be staggering.
For those who choose to grab hold of these opportunities, they truly do represent an excellent chance to thrive and grow as a business while establishing a strong footing in a market that has the potential to be an even bigger player in the coming years.
Ultimately, 2020 helped set the stage for the changes that were inevitable, rapidly speeding up adoption across markets and helping setup 2021 to be one of the biggest as far as expected growth in OTT demand. For telcos, this is big news, and it represents an even bigger opportunity than in years past.
For that reason, proactive and confident moves are the best way for these companies to help establish themselves in the midst of continued, accelerating market growth whilst earning a substantial portion of the associated profit for themselves.
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