Enjoy complimentary customisation on priority with our Enterprise License!
The over the top (OTT) market size is forecasted to grow by USD 630.5 billion at a CAGR of 27.77% between 2023 and 2028. The market is experiencing significant growth driven by several key factors. With the increasing preference for cloud and online streaming services, consumers are shifting towards convenient and accessible content consumption. Additionally, the renewal of shows across various online streaming channels enhances content availability and attracts a broader audience base. Moreover, the rising adoption of target advertisement-based streaming apps and pay TV ensures personalized content delivery, further fueling the expansion of the market.
_market_size_abstract_2024_v1.jpg.webp?v4.1.20)
To learn more about this OTT market report, Request Free Sample
The OTT market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market share by the video segment is significant during the forecast period. OTT services in the video category can be divided into video-on-demand, subscription video-on-demand (SVOD), advertising-based video-on-demand (AVOD), and transactional video-on-demand (TVOD). SVOD allows users to access video content for a limited period by paying a subscription fee. AVOD involves generating revenue through advertisements while users stream videos, with the content being free to watch. Platforms like YouTube operate on the AVOD model.
_market_segments_abstract_2024_v2.jpg.webp?v4.1.20)
Get a glance at the market contribution of various segments View the PDF Sample
The video segment witnessed substantial growth, with a value of USD 71.70 billion in 2018, continuing to rise until 2022. The increased adoption of smart devices like smartphones and tablets has fueled the demand for video content. Furthermore, advancements in mobile networks, particularly investments in 4G and preparations for the 5G network, have further amplified the need for video content. The upcoming 5G network promises enhanced performance, including faster data rates, lower latency, and increased traffic capacity, encouraging seamless downloading and streaming of video content on mobile devices. Consequently, video-on-demand subscriptions have also surged, contributing to the growth of the global market during the forecast period. This OTT market research and growth report also includes an in-depth OTT industry overview of drivers, trends, and challenges.
_market_regions_abstract_2023_geo_v2.jpg.webp?v4.1.20)
APAC is estimated to contribute 44% during the projection period.
For more insights on the market share of various regions. Download PDF Sample now!
Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast years. The presence of major market players in North America is driving the growth of the market in the region. These companies generate significant revenue from their North American business segments, which contribute the most to their overall operations. Many streaming service providers in the region are partnering with smart speaker manufacturers to integrate audio streaming and video streaming services into their systems. Additionally, companies are launching smart speakers with integrated streaming platforms, further fueling the growth of the market during the forecast period.
The OTT market is witnessing robust growth driven by the increasing demand for on-demand access to media content via the Internet. These platforms offer a wide range of content, including streaming license, local content, and podcasts, challenging traditional TV models. With a focus on customer experience, OTT providers offer personalized data and wider device availability, enhancing home entertainment. Moreover, OTT services provide advertisers with targeted marketing opportunities, leveraging social media platforms. Satellite and cable TV providers are also entering the OTT space, offering provider-based streaming options. This shift towards OTT reflects consumers' preferences for flexibility and diverse content selections.
Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of upcoming trends and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Growing preference for cloud streaming services is a major over-the-top market driver. Advancements in wired and wireless technologies, such as 3G, 4G, and 5G, are driving global adoption of cloud streaming services. These services prevent illegal downloading and sharing of video and audio files. companies use push strategies, like the freemium model, to convert free users to premium services, ensuring sustainability. Consumers are shifting to paid premium services for features like ad-free listening, high-quality audio, and the ability to download and skip tracks.
Cloud-based streaming is replacing traditional music systems, offering storage, streaming, and sharing across devices. Companies rely on the cloud to meet the demand for music, movies, and videos. Cloud streaming generates higher revenues for content companies and provides social media integration for personalized preferences and sharing. With growing internet penetration and improved services, consumers will increasingly adopt cloud streaming. Hence, such factors are driving the market during the forecast period.
The growing number of partnerships and acquisitions is an ongoing OTT market trend. The market is growing with the increasing demand for audio and video OTT content. To capitalize on the growing demand for OTT content, companies are forming strategic partnerships to gain a competitive edge over their competitors, which will help them increase their customer base. Some of the significant partnerships and acquisitions are mentioned below:
In September 2021, Indian OTT space, Zee Entertainment Enterprises Ltd (ZEEL), and Sony Pictures Networks India (SPNI) entered into a merger to grow the profit and market share across South Asia. These types of partnerships and acquisitions will increase access to new digital audio and video content, which will drive the growth of the market. All these factors are boosting the growth of the market during the forecast period.
Illegal downloading and piracy are major restraints hindering over-the-top market growth. Piracy poses a major challenge in the global market, impacting subscriptions worldwide. While some countries in Europe have piracy laws, many others lack strict regulations. Copyright piracy is widespread in countries like Portugal, the Netherlands, Spain, Latvia, and Bulgaria.
Moreover, Switzerland's laws protect torrent users but prohibit uploading files. The shift to digital music and the availability of content online has made piracy harder to combat. The lack of digital piracy laws in many countries and the use of VPNs contribute to the problem. Canada, Brazil, and India face significant piracy issues, affecting revenue for broadcasters and original streaming services. Despite copyright laws, piracy continues due to circumvention techniques.
The over-the-top market forecasting report include the adoption lifecycle of the market research and growth, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the OTT market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
_market_customer_landscape_abstract_2023_geo_v1.jpg.webp?v4.1.20)
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Netflix Inc: The company provides entertainment services like TV series, films, and games across a wide range of genres and languages. As of December 2022, it had around 231 million paid memberships in over 190 countries.
The OTT market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
8x8 Inc., Alphabet Inc., Amazon.com Inc., Apple Inc., Cineverse Entertainment Corp., Comcast Corp., Deezer SA, Meta Platforms Inc., FlixFling LLC, iflix Ltd., iMPACTFUL Group Inc., Microsoft Corp., Paramount Global, Sirius XM Holdings Inc., Sony Group Corp., Spotify Technology SA, Telstra Corp. Ltd., Tencent Holdings Ltd., and The Walt Disney Co.
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The over-the-top (OTT) market is seeing rapid growth driven by rising demand for media content delivered via alternatives to cable and satellite television. OTT platforms provide on-demand access to diverse content, offering consumers more flexibility than traditional TV. With competitive subscription fees and enhanced user experience, OTT services are reshaping home entertainment. These platforms offer various online content, including local content and podcasts, with streaming licenses that allow access across a wide range of OTT devices. Additionally, OTT providers leverage social media marketing to deliver personalized recommendations and attract users, focusing on niche content selections and adaptable packaging options.
The market is flourishing, providing consumers a multitude of options for accessing TV shows, live events, and original programming through online platforms. Moving away from traditional viewing methods, consumers are drawn to the diverse film and television content available on OTT services, supported by high-speed internet connections. Unlike conventional cable or satellite platforms, OTT adoption offers users genre-specific options and flexible packaging for on-demand viewing. Content creators are exploring new business models to monetize their offerings through subscriptions, while advancements in technology, such as faster internet speeds and smart TVs, enhance playback quality and minimize buffering for high-definition (HD) and ultra-high-definition (UHD) content across broadband and 4G/5G mobile networks.
|
Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
183 |
|
Base year |
2023 |
|
Historic period |
2018-2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 27.77% |
|
Market growth 2024-2028 |
USD 630.5 billion |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
22.77 |
|
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
|
Performing market contribution |
APAC at 44% |
|
Key countries |
US, China, UK, Germany, and Canada |
|
Competitive landscape |
Leading companiess, Market Positioning of companiess, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
8x8 Inc., Alphabet Inc., Amazon.com Inc., Apple Inc., Cineverse Entertainment Corp., Comcast Corp., Deezer SA, Meta Platforms Inc., FlixFling LLC, iflix Ltd., iMPACTFUL Group Inc., Microsoft Corp., Netflix Inc., Paramount Global, Sirius XM Holdings Inc., Sony Group Corp., Spotify Technology SA, Telstra Corp. Ltd., Tencent Holdings Ltd., and The Walt Disney Co. |
|
Market dynamics |
Parent market analysis, market growth analysis, market report, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
|
Customization purview |
If our OTT market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Content Type
7 Market Segmentation by Device
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
