Level 3, Streaming Media and Unisphere Study Reveals 67
Percent of OTT Companies Believe Virtual Reality is a Lasting
Technology
BROOMFIELD, Colorado,
June 14, 2016 /PRNewswire/
-- The Over-The-Top (OTT) market is moving in the direction of
virtual reality (VR) according to "The OTT-Video Services
Market—Today's Trends and What is Next for 4K, HDR, HFR and VR"
study released today.
Video - https://youtu.be/QLnwV6VU7uc
The global study, commissioned by Level 3 Communications (NYSE:
LVLT) and conducted by Unisphere Research, in partnership with
Streaming Media, interviewed 628 people from media and
entertainment companies across the globe. Respondents were asked to
weigh in on the current state of OTT as well as some additional
topics ranging from business, technology and competitive challenges
and the revenue viability of offering OTT services. The study built
on research conducted in 2015, probing respondents on next
generation content like virtual reality (VR), 4K, high dynamic
range (HDR) and high frame rate (HFR) video.
Among the most compelling results is the opinion of respondents,
"VR-video will become a mainstay of streaming video." While VR is
expected to become a mainstay, researchers also found potential
barriers to adoption including lack of consumer access to players,
delays in the availability of VR devices and bandwidth limitations
for OTT VR content delivery.
Key Findings:
Below is a sampling of the findings from the OTT study; a
comprehensive overview of the data and analysis can be found in the
full report.
- 45 percent of companies surveyed are offering OTT services,
which is a 10 percent increase over 2015, indicating significant
adoption.
- Of the companies offering OTT services:
- 52 percent are researching, getting ready to launch or have
already launched VR-video content
- 67 percent believe VR is here to stay, however, acknowledged
primary business and technical challenges including lack of
consumer awareness, interest and fear of competition from free
services, user generated content and bandwidth caps.
- Close to 50 percent of respondents have plans for 4K
broadcasts, 4K VOD streaming and/or 4K live-linear or live event
streaming.
- On the HDR and HFR front, almost 70 percent of respondents
confirmed they offer or plan to offer both HFR in existing HD
video, as well as offering HDR content for greater color
depth.
- 87 percent of respondents stated offering OTT services is a
viable revenue opportunity.
- About half of respondents [48 percent] expected their OTT
revenue to grow between 11 to 50 percent from 2015 to 2016, and
almost 20 percent of respondents anticipated growth to be more than
50 percent year over year.
- Some impending OTT service offerings are expected to begin
emphasizing live OTT content over on-demand content. If this
occurs, it will signal the first time the OTT industry has
highlighted live content instead of on-demand content and catch-up
services.
- Forty percent of respondents have a multiple-CDN (content
delivery network) approach for their OTT video services.
Key Quote:
Anthony Christie, Chief Marketing
Officer, Level 3
"As the OTT industry continues to grow and evolve, this study
shows there is more focus on not only delivering live streaming
events – which can be a challenge in itself – but also streaming in
4K or even VR. End users expect their video streaming experience to
be seamless, even as they begin to consume next generation content,
and this study reveals the ever-increasing importance for OTT
providers to have a robust CDN strategy to enable this upward OTT
trajectory as well as the importance of a safe, secure, reliable
network."
Tim Siglin, Contributing Editor
for Streaming Media Magazine and Principal Report Author
"When I started the process of crafting questions for this
second annual survey on OTT for Level 3, I was a VR-video skeptic.
But it became clear, during the analysis phase, that a VR-video
strategic decision has tremendous mindshare for those companies
already offering OTT services."
Key Resources:
- The Future of OTT (2016 Study)
- Over-The-Top Video delivery: Challenges and Opportunities
for Global OTT Service Providers (2015 Study)
- About Level 3's Media and Entertainment Services
About Level 3 Communications
Level 3 Communications, Inc. (NYSE: LVLT) is a Fortune 500
company that provides local, national and global communications
services to enterprise, government and carrier customers. Level 3's
comprehensive portfolio of secure, managed solutions includes fiber
and infrastructure solutions; IP-based voice and data
communications; wide-area Ethernet services; video and content
distribution; data center and cloud-based solutions. Level 3 serves
customers in more than 500 markets in over 60 countries across a
global services platform anchored by owned fiber networks on three
continents and connected by extensive undersea facilities. Level 3
services are provided by subsidiaries of Level 3 Communications,
Inc. For more information, visit www.level3.com or get to know
us on Twitter, Facebook and LinkedIn.
© Level 3 Communications, LLC. All Rights Reserved. Level 3,
Level 3 Communications, Level (3) and the Level 3 Logo are either
registered service marks or service marks of Level 3
Communications, LLC and/or one of its Affiliates in the United States and elsewhere. Any other
service names, product names, company names or logos included
herein are the trademarks or service marks of their respective
owners. Level 3 services are provided by subsidiaries of Level 3
Communications, Inc.
Forward-Looking Statement
Some statements made in this press release are
forward-looking in nature and are based on management's current
expectations or beliefs. These forward-looking statements are not a
guarantee of performance and are subject to a number of
uncertainties and other factors, many of which are outside Level
3's control, which could cause actual events to differ materially
from those expressed or implied by the statements. Important
factors that could prevent Level 3 from achieving its stated goals
include, but are not limited to, the company's ability to: increase
revenue from its services to realize its targets for financial and
operating performance; develop and maintain effective business
support systems; manage system and network failures or disruptions;
avert the breach of its network and computer system security
measures; develop new services that meet customer demands and
generate acceptable margins; manage the future expansion or
adaptation of its network to remain competitive; defend
intellectual property and proprietary rights; manage risks
associated with continued uncertainty in the global economy; manage
continued or accelerated decreases in market pricing for
communications services; obtain capacity for its network from other
providers and interconnect its network with other networks on
favorable terms; successfully integrate future acquisitions;
effectively manage political, legal, regulatory, foreign currency
and other risks it is exposed to due to its substantial
international operations; mitigate its exposure to contingent
liabilities; and meet all of the terms and conditions of its debt
obligations. Additional information concerning these and other
important factors can be found within Level 3's filings with the
Securities and Exchange Commission. Statements in this press
release should be evaluated in light of these important factors.
Level 3 is under no obligation to, and expressly disclaims any such
obligation to, update or alter its forward-looking statements,
whether as a result of new information, future events, or
otherwise.
Contact
Information
|
|
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Media:
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Investors:
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Francie
Dudrey
|
Mark
Stoutenberg
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+1
720-888-5434
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+1
720-888-2518
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francie.dudrey@level3.com
|
mark.stoutenberg@level3.com
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