Romania’s OTT market remains relatively underdeveloped, although consumer appetite for pay video is clear given the market’s 78.3% mul- tichannel penetration rate, second only to Poland (89.7%) in the region. Strong pay TV adoption has been driven by affordable multichannel price points and continued competition among cable, IPTV and multiple DTH operators. Romania’s broadband adoption lagged regional peers at 41.6% in 2011, which, combined with a low-cost and highly saturated pay TV sector, indicates OTT players will be targeting a limited mass mar- ket subset. Our models indicate broadband subscriptions will grow at a 3.1% 2011-2020 CAGR, opening opportunities for OTT in the medium term, particularly as the market’s competitive pay TV operators look to multiscreen TV Everywhere systems for competitive differentiation.
