By 2020, only 7 per cent of total video revenue to come from online: MPA

By afaqs! news bureau , afaqs!, Mumbai | In Digital | July 17, 2015
While online video consumption is expected to increase, monetisation of the same is a potential pain point, according to Media Partners Asia.

Media Partners Asia (MPA) has released a report on 'Future Value Creation in TV and Broadband', which highlights that despite delays in DAS implementation, digitalisation progress is on track. Cable, meanwhile, shifts focus from expansion to monetisation on video, broadband and higher network control.

Media Partners Asia

The report also mentions that traditional broadcasters are looking to capitalise on the emerging digital opportunity by investing to create long-term assets. For instance, incumbent broadcasters Zee, Star and Sony have started to aggressively invest in delivering branded OTT services. The belief is that online video consumption will complement the existing linear pay-TV business.

Eventually, subscription OTT services will take off as bandwidth costs become more affordable and compelling exclusive content is made available for online audiences. Nonetheless, revenue monetisation will require more scalability, as online video revenues are projected to account for not more than 10 per cent of total video industry revenues over the next decade.

View the full report below:

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