Over The Top (OTT) Media Delivery Services Market 2014-2019; Strategies for Global Audio, Message, Voice, Gaming & Video on Demand (VoD)

As we have explained in Chapter 1, in order to measure the global OTT VoD industry this report will focus on four VoD Models: The SVoD, AVoD, Retail and Renting models. Therefore, Visiongain has calculated that in 2014, the AVoD revenue model is expected to create 49% of global VoD revenues as it will reap $9.3 billion from all advertisement and banners created whilst streaming the video. The SVoD revenue model is expected to create 40% of global VoD revenues. The rental revenue model is expected to create 6% of global VoD revenues whilst the retail model of video on demand will only create 5% of global revenues in 2014 (chart 3.8).

Chart 3.8: Revenue Breakdown of Global VoD Market for AVoD, SVoD, Rental & Retail Revenue Models in 2014 and 2019 (% Share) 2014 2019

AVoD SVoD rental Retail AVoD SVoD rental Retail

3% 5% 6% 9%

49% 46%

40% 42%

Source: Visiongain, 2014

However, in 2019 the SVoD model will create 42% of revenues with $25.54 billion in revenues. The rental model will increase strongly as it will reach $5.47 billion representing 9% of global revenues; the retail model will also increase to create $1.82 billion in revenues, but its share of total revenues in 2019 is expected to decrease to 3%. The AVoD model will also decrease its share of global revenues, but it will still be the most important model as it will be generating 46% of global revenues.

Overall, it is expected that VoD will reach more than half of the worldwide households with a TV by 2019. This revenue model will have a CAGR of 14.4% as it will grow its users from 204 million households in 2010, to 687 million households in 2019. It is also expected that almost a third of the households using VoD in 2019 are expected to come from the APAC region. www.visiongain.com Page 51

Over The Top (OTT) Media Delivery Services Market 2014-2019; Strategies for Global Audio, Message, Voice, Gaming & Video on Demand (VoD)

Table 4.23: LATAM OTT Media Delivery Revenue Forecast by Submarket 2014-2019 ($ Billion Revenues, AGR % and CAGR %) Column1 2014 2015 2016 2017 2018 2019 CAGR% VoD 1.14 1.27 1.48 1.79 2.13 2.55 17.5% AGR% 11.4% 16.5% 20.9% 19.0% 19.7%

VoD % Share 36.4% 33.5% 31.6% 30.1% 30.0% 30.9% OTT Voice & Message 0.65 0.74 0.85 1.01 1.18 1.31 15.0% AGR% 13.8% 14.9% 18.8% 16.8% 11.0%

Voice & Message % Share 20.8% 19.5% 18.2% 17.0% 16.6% 15.9%

OTT Music downloads 0.42 0.61 0.87 1.23 1.51 1.76 33.2% AGR% 45.2% 42.6% 41.4% 22.8% 16.6% Music Consumption % Share 13.4% 16.1% 18.6% 20.7% 21.3% 21.3%

OTT Gaming 0.92 1.17 1.48 1.91 2.27 2.63 23.4% AGR% 27.2% 26.5% 29.1% 18.8% 15.9% Gaming % Share 29.4% 30.9% 31.6% 32.2% 32.0% 31.9%

Total LATAM 3.13 3.79 4.68 5.94 7.09 8.25 21.4%

Total AGR% 21.1% 23.5% 26.9% 19.4% 16.4% Source: Visiongain, 2014

www.visiongain.com Page 104

Over The Top (OTT) Media Delivery Services Market 2014-2019; Strategies for Global Audio, Message, Voice, Gaming & Video on Demand (VoD)

Table 7.1 ’s Company Overview 2013 (Total Revenues, Products, Competitors, Employees, Ticker, Headquarters)

2013 Total company revenue $bn $77.8 360 gaming and entertainment console, for , Xbox 360 video games, Xbox Principal Products and Services of 360 accessories; Xbox LIVE; ; and Windows EDD Phone. Total Revenue of EDD $Bn $10.1 Number of Employees 99,000 Key Competitors Apple, Google, Blackberry, , Sony, Microsoft Redmond Campus,Redmond, Headquarters Washington, U.S. Ticker MSFT Website www.microsoft.com Source: Visiongain, 2014. Microsoft, 2014

7.2 Apple Inc

Apple Inc. was founded in 1977 and is one of the most important OTT media providers in the whole world, its products and services are widely used and regarded as providing high quality and reliability in everything they offer. The Company designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications.

Products and services include: iPhone, iPad , Mac , iPod , Apple TV , a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud , and a variety of accessory, service and support offerings. Apple also sells and delivers digital content and applications through the iTunes Store, App Store, iBooks Store, and Mac App Store.

Table 7.2 Apple Inc. Overview 2013 (Total Revenues, Products, Competitors, Employees, Ticker, Headquarters)

2013 Total company revenue $bn $170,910 iPhone, iPad , Mac , iPod , Apple TV, iOS and OS X operating systems, iCloud, the iTunes Store, App Principal Products and Services Store, iBooks Store, and Mac App Store. www.visiongain.com Page 126