Streaming video on demand—also known as OTT viewing –is becoming the norm in video content consumption today. It also presents an incredible opportunity. The combined size of the OTT market was estimated at $29.4 billion in 2015, and is expected to grow to more than $64 billion by 2021. Parks Associates reports that one-third of US homes have a streaming player, which is one of the most popular ways to view video today (other than traditional TV). Though mobile already accounts for more than half of all video viewing.

In its report, Top 5 Video Trends in an IP-based World, Parks Associates examines both the challenges and opportunities presented by the rise of OTT video viewing. In addition to outlining these trends, the report looks at larger market challenges such as allowing content distributors to own the consumer relationships and the evolution of storytelling, content production and delivery in an IP-based world.

According to the report, these are the top 5 video trends today:

1. Users expect opportunities to interact with their content.

This presents challenges in terms of flexibility and responsiveness, but provides an opportunity to learn more about—and appropriately monetize—audiences.

2. Global, IP-based video services will be the next big revenue pool for content makers.

This presents challenges to reaching a global market for everything from technology to legal and localization issues. However, the opportunity for monetization at scale and in hyper-local and niche contexts is huge.

3. Live TV is not dying; it is shifting to connected devices.

The technological demands of delivering live content at scale are quite high but audiences are attracted to real-time content, which creates a must-watch revenue opportunity.

4. Consumers will demand new, diverse types of content.

Creating new content types is never easy, but for those who do, audiences and earnings are sure to follow.

5. Artificial Intelligence (AI) will play a key role in the success of video services.

Though already being effectively implemented in a range of media settings, AI is hardly a perfected technology. There’s plenty of work to be done. That said, Parks sees it as the key to the evolution of personalization, with monetization opportunities to match.

For each of its key trends, the Parks Associates report offers real world examples while outlining the associated challenges and opportunities. And this, of course, is the most practical way to capitalize on digital’s promise: Understand and address the challenges while creating solid revenue strategies that support a long-term strategy