Over-The-Top Communications Services to Pose a Threat for SMS Services

Published on : Apr 11, 2016

ALBANY, New York, April 11, 2016 - Marketresearchhub.com MarketResearchHub.com has announced the addition of the “Over-The-Top Communications Services: Emerging Monetization Paths” report to its offering. The detailed report contains analysis of the current state of the over-the-top communications market, its competitor landscape, key features, and business model evolution. Emerging monetization strategies, including digital content, sponsored chats, advertising, and mobile payments, are studied in the report.

Case studies of over-the-top (OTT) communication providers such as WhatsApp, WeChat, Viber, Snapchat, LINE, and Facebook Messenger have been given in a detailed manner in the report. The report also studies how carriers are impacted by OTT communications providers.

The OTT partnership landscape, OTT partnership opportunities, and why carriers and OTTs need partnerships have been discussed in the report. Key findings and recommendations are also given.

Over-the-top (OTT) applications are apps or services that offer a product over the internet and bypass traditional distribution methods. These services are thus lower in cost than traditional methods of delivery. Services included in over-the-top applications typically involve media and communication. In simple words, OTT refers to the delivery of audio, video, and other media over the internet, without the involvement of a multiple-system operator while distributing the content of the message. In this method, the internet provider may be aware of the content of the IP packets but not able to control and view the content. The internet provider has no copyrights and does not have to redistribute the content.

OTT services are rapidly evolving with revenue dilution implications for carriers all over the world. The key players in OTT are re-inventing their mobile messaging application interfaces to include voice and video communications. OTT players such as Google and Facebook have made huge progress in their mobile IP voice and video facilities in 2015 and this is likely to ensure competitive pressure on emerging players currently and in future. OTT players are constantly innovating their communication apps to transform them into social networking hubs that are rich media platforms offering a number of media services.

According to the report, partnerships with carriers are needed by OTT communications providers to enable differentiation and scale. The game plan of most OTT messaging providers is to initially expand their scale and then monetize to become the biggest communication platform that attracts developers, thereby resulting in a better and enriched offering to the users.

Messaging apps are posing a threat to SMS services. Messaging apps offer migration of voice calls from carriers to VoIP providers such as WhatsApp and Skype, thus eroding carriers’ revenue. According to the report, WhatsApp and Facebook Messenger are the most powerful OTT communications players.

The report contains details about the subscriber growth of WhatsApp, user statistics from the world’s largest OTT players, investments by key OTT companies, digital platform timeline of LINE and WeChat, and digital content offerings from OTT providers.

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