Report Summary

2014 Over-The-Top Outlook

Over-The-Top Outlook: Going Beyond the Cable Box

In 2013, over 60% of the US population watched video online through an Over-The-Top (OTT) service such as iTunes, Netflix, or Hulu. The OTT landscape continues to evolve rapidly, with increased competition among incumbents and new players and platforms entering the space. To help track the fastest growing market in media, GroupFlix is releasing their first annual report providing an Over-The-Top Outlook: Going Beyond the Cable Box.

This study combines primary industry research, online survey data, and interviews with cord cutting consumers and industry executives. The result is a comprehensive view of the Over-The-Top landscape and predictions for 2014. Report findings include:

Report findings include:

  1. Up to 90% of the US population will be an OTT viewer in 2018, up from 60% in 2013

  2. Cord-cutting is poised to continue growth at over 20% YoY, rising to over 12MM households by 2018

  3. iTunes will need to transition to the cloud and improve their user experience to maintain dominance in EST

  4. RedBox Instant is likely to close their doors in 2014, as they have not been able to gain traction with a hybrid content model that confuses consumers

  5. Netflix will have another phenomenal year of growth, continuing to drive innovation within the SVOD window

  6. Google Fiber holds the most promise for a national OTT TV service, but roll-out remains too slow to make an impact in 2014

  7. The early success of Chromecast has finally put Google in position to battle for the living room screen. In 2014, we expect them to make use of their now empty home screen, making changes that can generate revenue through content and/or advertisement

  8. Amazon will likely slow investment in video, leaving market share on the table for competing SVOD services

  9. Hulu's change in management has led to internal culture struggles that will have a great affect on their growth potential as an free video on-demand service (FVOD). In 2014, they will continue dial back free content in attempt to push user to HuluPlus, and continue to focus on their own original content.