Report: Connected TV and OTT Set to Rise

A growing appetite for over-the-top (OTT) content and the potential revenue streams it could bring to equipment manufacturers are strengthening the connected TV space.

Within two years, Internet video revenues are expected to top $29 billion worldwide, pulling with it a 58 percent share of the Internet television equipment market. That means connected TV and OTT content are poised for a growth spurt, according to a new report from IMS Research, Market Opportunities for Internet Video to the TV.

12.5 percent of TV sets shipped globally in 2010 will have some form of connectivity; and by 2011, that number will grow to 30 percent.

Content partnerships are expected to rise in 2010 as well, even before 3D viewing hits its stride. This is likely good news for advertisers and the OTT/Internet video business models, which are still being defined and re-defined by content owners. A recent advertising effectiveness study by Arbitron provided promising evidence.

One key finding was that a traditional 30-second spot television commercial, when integrated within an interactive, social networking environment, often outperforms broadcast television equivalents in brand metrics such as recall, consideration and purchase intent.

In the meantime, 2011 looks to be the tipping point for OTT content, connected TV and the technologies and equipment components that will drive them.