Limited internet connectivity in rural areas can pose a major challenge for global OTT content market growth. A large section of the population still resides in rural and remote locations across the world, which have poor access to high-speed broadband networks. This curtails their ability to seamlessly stream on-demand video and audio content through mobile apps and websites of OTT platforms.
The lack of adequate bandwidth in rural internet also affects the quality of experience for OTT services even if these are available. Video and audio content often buffer or stop during playback in low bandwidth conditions. This discourages users from frequent and long viewing sessions on OTT platforms. Content providers have fewer options to maximize monetization through advertising or subscriptions in rural markets. Unless the global rural-urban digital divide is bridged through focused infrastructure investments, the OTT industry may find it difficult to realize its full growth potential in the near future.
Market Opportunities: Growth of VR/AR based content
The adoption of virtual and augmented reality technologies has increased exponentially in recent years as both hardware and content have improved dramatically. As VR/AR headsets become more affordable and immersive content expands, more consumers are engaging with these interactive mediums. This rising popularity of VR/AR can offer growth opportunities for tailored content delivery through over-the-top (OTT) platforms. Content creators and OTT providers that diversify into specialized VR/AR content have a unique chance to attract new audiences and premium subscribers.
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