The traditional ways people watch television continue to evolve rapidly, and recent research from ABI Research highlights the shifting landscape: the over-the-top (OTT) video market reached $8 billion in 2012.
According to ABI Research, North America, Europe, and the Asia-Pacific region all saw year-on-year growth in excess of 50%. The firm forecasts that the OTT market will surpass $20 billion by 2015, reflecting strong and sustained consumer demand for online video services.
Michael Inouye, senior analyst at ABI Research, notes that “the shift to digital and OTT distribution is accelerating, particularly as content providers increasingly warm up to these channels.” He adds that while traditional pay-TV services still have advantages, the industry is approaching a pivotal moment when content owners must choose whether to maintain the current distribution model or embrace disruptive digital paths that could reshape how media is delivered.
ABI identifies Netflix and Hulu, alongside technology giants such as Apple and Amazon, as the primary disruptors driving change in the TV market. These companies have pushed subscription streaming, ad-supported platforms, and original programming into the mainstream, altering viewer expectations and business models.
Netflix has strategically focused on original, in-house programming to differentiate its service. A prominent example is the series House of Cards, starring Kevin Spacey, which debuted in February. If audience adoption is strong, House of Cards could have lasting implications for the television industry by demonstrating new content and release strategies.
Unlike traditional network or cable shows, House of Cards was released with all episodes of a season simultaneously, allowing viewers to watch at their own pace. This model removes conventional scheduling constraints and enables episodes to run with flexible durations rather than fixed 24-minute slots set around commercial breaks. That freedom alters narrative pacing and viewer engagement, and it signals how streaming platforms can redefine television norms.
Other major players are investing aggressively as well. Amazon announced plans to develop original programming, while Microsoft and other technology companies have expanded their video offerings or platform capabilities. These moves increase competition and accelerate innovation around content creation, distribution, and user experience.
ABI’s research also explored OTT delivery methods and revenue composition. It predicted that revenue from subscription-based OTT services, which accounted for about 58% of OTT video revenue at the time, would gradually decline to roughly a 32% share by 2018 as ad-supported models, transactional services, and hybrid approaches gain traction. This shift suggests a more diverse and competitive monetization landscape, with a growing role for advertising and lower-cost access options.
Overall, the key takeaway from ABI’s findings is that television is undergoing significant transformation with many developments still to unfold. The migration to digital distribution, the rise of original streaming content, and the changing balance of revenue models together point to a future in which consumer choice and on-demand viewing dominate. Which companies will lead the next phase of television—traditional networks adapting to digital models, established streaming services expanding their content and reach, or tech companies leveraging platform power—remains an open question. What is clear is that viewers and content owners are already moving toward a new era of TV driven by convenience, innovation, and flexibility.