iWorld
Global OTT may expand at 14.5 per cent CAGR
MUMBAI: Over-the-top (OTT) content is the delivery of audio, video, images, and other media over the internet and bypasses traditional content distribution services. OTT services are mostly related to communication and media and are generally lower in cost than the traditional method of content delivery. OTT content, applications, and services are increasingly being adopted in all segments of commerce and society and are affecting and disrupting traditional industries at a significant pace.
Consumers use online video instead of traditional television; online communications platforms instead of traditional telephone services; and today are able to download films and music that were once provided only on physical media. Additionally, the process of advertising and searching for services is increasingly moving to these online platforms. This has led to an exponential market growth globally. The global OTT content market is estimated to be valued at US$ 53.2 Bn by the end of 2016 and is expected to register a CAGR of 14.5% during the forecast period (2016–2026).
Top OTT content market players are developing innovative marketing and distribution channels to enter and rule untapped markets. Some of the top companies operating in the global OTT content market include Akamai Technologies, Amazon.com Inc., Apple Inc., Facebook Inc., Google Inc., IBM, LeEco, Limelight Networks, Microsoft Corporation, and Netflix Inc. Several Indian companies have also entered the OTT content market in a big way. Some of the Indian OTT content market players include Star India Pvt. Ltd., Zee Entertainment Enterprises Ltd., Spuul, Eros International Plc., and Viacom 18 Media Pvt. Ltd, according to a PRNewswire release.
Penetration of high speed broadband
Growth in the penetration of high speed broadband, increasing mobile subscriptions and adoption of mobile connected devices, new features and advanced capabilities in smartphones, attractive pricing, and more content options are some of the major drivers fuelling the growth of the global OTT content market. Also, a shift in viewer preferences from the television format to a more customised, anytime, anywhere content viewing format is also boosting the growth of the global OTT content market.
However this growth is hampered by factors such as online piracy activities, low bandwidth in emerging countries, lack of offline content availability, and technical challenges faced during OTT content delivery.
Video content
Video content type segment projected to be the most attractive segment over the forecast period. In terms of revenue, the video segment is anticipated to register a relatively higher CAGR of 15.8% between 2016 and 2026. This growth is attributed to extensive growth of high speed broadband infrastructure in emerging economies and popularity of subscription-based models in developed economies. This segment is expected to register high Y-o-Y growth rates throughout the forecast period.
TVOD revenue model segment expected to register high Y-o-Y growth rates throughout the forecast period. The TVOD segment is estimated to register a CAGR of 15.8% during the forecast period. The AVOD segment is expected to witness significant revenue growth due to its ease of use; personalized, modern interface; and better viewing experience of AVOD services.
Smartphones and Tablets
Smartphones and Tablets device / platform type segment projected to be the most attractive segment over the forecast period. The smartphones and tablets segment accounted for a relatively high market value share in 2015 and this segment is anticipated to remain dominant through 2026. The dominance of the smartphones and tablets segment is attributed to increasing consumer preference towards these devices for availing OTT services such as video and audio streaming, social networking, and texting. The Smart TVs segment is expected to register high Y-o-Y growth rates throughout the forecast period and is anticipated to register a CAGR of 18.7% between 2016 and 2026.
APEJ and Latin America
APEJ and Latin America expected to be the fastest growing markets over 2016–2026. The APEJ OTT content market is projected to be the most attractive regional market in the global OTT content market and is anticipated to witness a CAGR of 24.6% over the forecast period. The market in North America accounted for a relatively high value share in 2015.
Gaming
MTG gaming chief Benninghoff joins NODWIN board as esports firm primes for IPO
The Gurugram-based esports firm is pursuing a public listing, has returned to profitability and is growing revenues by 42 per cent
GURUGRAM: NODWIN Gaming is moving fast. The Gurugram-based gaming and esports company has launched a pre-IPO fundraising round, appointed UBS as lead adviser for both the round and a subsequent public listing, and landed a heavyweight board director, all in one go.
The new board member is Arnd Benninghoff, executive vice president of gaming at Stockholm-listed Modern Times Group (MTG), who has overseen the group’s strategic investments and portfolio growth since 2014. He is no stranger to building things: Benninghoff has founded and built fifteen companies, served as chief digital officer at ProSiebenSat.1 Media AG, managing director of SevenVentures, and chief executive of Holtzbrinck eLAB. He began his career as a journalist at Deutsche Presse Agentur and various TV networks, holds a Diplom-Kaufmann in business and administration from the University of Münster, and previously sat on the board of Edgeware AB.
The numbers back the ambition
NODWIN is not pitching a story without substance. The company has returned to EBITDA profitability and posted a 42 per cent year-on-year revenue surge, reaching $58.5m in the first nine months of FY2026. The pre-IPO round will combine a primary issuance to fund global expansion through organic growth and acquisitions, alongside a secondary sale to give existing shareholders some liquidity.
Akshat Rathee, co-founder and managing director of NODWIN Gaming, said Benninghoff understands “the entire lifecycle of the gaming and media ecosystem, from the boots-on-the-ground reality of building startups to the strategic complexity of managing multi-billion dollar global portfolios.”
Benninghoff, for his part, said the company “sits at the intersection of sports, entertainment, and technology, making it one of the most exciting players in the global gaming landscape today.”
A portfolio built for the global south
Founded in 2014 by Rathee and Gautam Virk, NODWIN has quietly assembled one of the more compelling esports portfolios outside the Western hemisphere. Its properties include DreamHack India and Comic Con India, and it recently acquired StarLadder, the Ukraine-based tournament organiser behind premier events in CS:GO and Dota 2. The company also serves as a long-term strategic marketing partner for the Evolution Championship Series (EVO), the world’s most prominent fighting game tournament, helping push it into new geographies.
Its geographic focus spans South Asia, Central Asia, Southeast Asia, the Middle East and Africa. Backers include Nazara Technologies, KRAFTON, Sony Group Corporation, JetSynthesys, and the founders’ investment vehicle Good Game Investments.
What comes next
With UBS running the books, a board freshly reinforced with European media and gaming expertise, and revenue heading in the right direction, NODWIN is laying the groundwork deliberately. The esports industry has burned investors before with big promises and thin margins. NODWIN’s return to profitability, combined with a real portfolio of owned intellectual properties across gaming, music and youth culture, gives it a more credible runway than most. The IPO clock is now ticking.
