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The online streaming services market size is forecast to increase by USD 507 billion at a CAGR of 26.01% between 2023 and 2028. The market is experiencing significant growth, driven by the rising penetration of smartphones and internet access worldwide. This trend is fueling the demand for on-demand video content, enabling consumers to access their favorite shows and movies at their convenience. Additionally, the integration of advanced technologies such as artificial intelligence and machine learning is enhancing the user experience by providing personalized recommendations and improving content discovery. However, concerns pertaining to video piracy continue to pose a challenge to market growth. As more players enter the market, competition is intensifying, necessitating continuous innovation and differentiation to retain subscribers. Overall, the market is poised for continued growth, driven by technological advancements, increasing consumer demand, and expanding internet penetration.
The online streaming services market, also known as the video streaming market, is experiencing significant growth due to the increasing popularity of on-demand video content. Cost analysis plays a crucial role in the market's expansion, with cloud-based solutions becoming increasingly preferred over on-premises systems due to their flexibility and scalability. Consumers and enterprises alike are adopting streaming services for various applications, including video production, remote patient monitoring, webinars, courses, and more. The proliferation of internet connectivity, social media platforms, and mobile phones has made streaming services accessible to a wider audience. The market caters to diverse sectors, such as schools, universities, colleges, and even theatrical releases, which are now available online.
The market's growth is also driven by the integration of streaming services with smart TVs, providing a seamless viewing experience for consumers. Video data traffic is expected to increase exponentially as more content is produced and consumed online.
The 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 subscription segment is estimated to witness significant growth during the forecast period. The market, encompassing multimedia content delivery via video presentations, has witnessed significant growth due to the increasing adoption of subscription video-on-demand (SVOD) platforms. Universities and colleges have increasingly utilized these services for educational purposes, while entertainment services have seen a growth in viewership. Artificial Intelligence (AI) and advanced video management systems have enabled live broadcasting, 360-degree video streaming, and virtual reality (VR) experiences. OTT (over-the-top) streaming platforms, including YouTube, have disrupted traditional entertainment services such as satellite TV and cable TV, with their innovative offerings. Transcoding and processing capabilities, user preferences, and ethical guidelines are key considerations in the industrial chain.
Compliance necessities, downstream buyers, and manufacturing analysis, including franchise fees and end-user concentration, significantly impact sales. Pricing, gross margin, and cinematography quality are crucial factors for content libraries. Regulation and data privacy standards are essential for maintaining user trust. The leading players in the market face switching costs and competition from each other, making innovation a priority. The BCG Report highlights the importance of content libraries, user experience, and strategic partnerships for success in the online streaming market.
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The subscription segment accounted for USD 47.60 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market is witnessing significant growth due to the increasing demand for multimedia content from universities and colleges. Video presentations have become an essential part of education, and online video streaming has emerged as a popular entertainment service. Artificial Intelligence (AI) is being extensively used for content delivery services, including transcoding and processing, to ensure seamless viewership. Innovations such as live broadcasting, 360-degree video streaming, and virtual reality (VR) are gaining popularity. Traditional entertainment services like satellite TV and cable TV are facing stiff competition from OTT streaming platforms. The industrial chain of online video streaming includes raw material suppliers, content delivery networks, and downstream buyers.
Moreover, compliance necessities, manufacturing analysis, and franchise fees are crucial factors influencing the market. End-user concentration, sales, and user preferences are key drivers. Cinematography and content libraries are essential raw materials for this market. Price and gross margin are critical factors for content providers. Ethical guidelines and data privacy standards are essential considerations for players in this market. Regulation plays a significant role in shaping the market dynamics. BCG Report predicts continued growth in this sector, with the potential for further innovation in VOD & complementary content.
Our online streaming services market researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising penetration of smartphones and internet access is the key driver of the market. The market is experiencing significant growth due to the widespread availability of digital media devices and quicker internet connections. Mobile viewing is a key trend in this market, with an increasing number of users opting for ad-free content on their smartphones and tablets. Live streaming is another popular feature, allowing viewers to watch events in real-time with no buffering. OTT (Over-The-Top) platforms are increasingly using analytics tracking to understand their potential audience and tailor content accordingly. Development trends include non-linear streaming, voice-overs, and video on demand, offering watch-time feasibility for users. Broadband infrastructure is essential for delivering high-quality content, and hybrid monetization models are being adopted to cater to diverse revenue streams.
However, training and support, managed services, and scriptwriting for digital original content are also becoming crucial aspects of this market. Content fragmentation across multiple platforms is a challenge, but smart TVs and other large-capacity devices offer a solution. Overall, the market is evolving rapidly, with new technologies and business models shaping its future.
The integration of advanced technologies with online streaming is the upcoming trend in the market. Online streaming services have witnessed significant growth in recent years, driven by the increasing availability of high-speed internet and the proliferation of digital media devices. Live streaming and video on demand (VOD) have become popular consumption models, enabling quicker access to content on mobile devices, smart TVs, and other digital platforms. Analytics tracking and hybrid monetization models, including subscription and advertising, offer potential audience reach and revenue generation opportunities. Artificial intelligence (AI), deep learning, natural language processing, and blockchain technology are transformative technologies in the online streaming market. AI aids various aspects of video production, such as cinematography, editing, voice-overs, and scriptwriting.
For instance, Netflix uses AI algorithms to recommend content to viewers based on their viewing history. Additionally, AI is used for content fragmentation, enabling non-linear streaming and watch-time feasibility, ensuring no buffering and large capacity. Broadband infrastructure development trends, such as 5G, will further enhance the online streaming experience by providing faster internet speeds and enabling live pause and OTT (over-the-top) services. Training & support, managed services, and revenue model innovations, such as scripted digital original content, are also key development areas. Overall, the market is poised for continued growth, with AI technology playing a pivotal role in enhancing content quality and viewer experience.
The concerns pertaining to video piracy is a key challenge affecting the market growth. The global market for online streaming services is experiencing significant growth, driven by the increasing geographical availability of live streaming and digital media devices. With quicker internet connections, viewers can now enjoy ad-free content on their mobile devices for watch-time feasibility. Analytics tracking enables providers to understand their potential audience and tailor content accordingly, while voice-overs and non-linear streaming via video on demand cater to diverse viewer preferences. OTT platforms offer no buffering and large capacity, allowing for live pause and hybrid monetization models. Development trends include digital original content, scriptwriting, and fragmentation across smartphones and tablets, smart TV, and other digital platforms.
However, training & support and managed services are crucial for revenue generation through subscription and advertising models. However, the prevalence of web video piracy and illegal streaming through torrent sites poses a significant challenge, with users able to download copyrighted content for free, hindering market expansion. Broadband infrastructure and deployment type also impact market growth.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
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.
Access Industries Inc. - The company offers online streaming services. Its music and audio streaming services are available in over 180 countries across the world, with a music library of 56 million tracks.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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 online streaming services market, also known as the video streaming market, is witnessing significant growth due to the increasing demand for on-demand content and digital transformation. Cost analysis plays a crucial role in the market, with both cloud-based solutions and on-premises systems offering benefits such as reduced infrastructure costs and easier content upload. Technological innovation, including AI technology and machine learning pipelines, is transforming the market by enabling personalized content recommendations and improving consumer experience. Consumer behavior analysis is another key trend, with mobile phones and social media platforms becoming primary devices for accessing digital channels. Product types include video production, media players, and live streaming platforms, catering to consumers and enterprises alike.
The market is also expanding into new areas such as online learning, remote patient monitoring, webinars, and courses. Internet connectivity and video data traffic are critical factors, with live streaming platforms and theatrical releases driving up demand. Cloud technology and blockchain technology are disrupting the supply chain by enabling secure and efficient content distribution. Paramount plus and Crackle are examples of successful streaming services, while digital channels and smart TVs are becoming increasingly popular. Overall, the streaming services market is poised for continued growth, driven by consumer preferences, technological innovation, and the increasing availability of high-speed internet.
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Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 26.01% |
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Market growth 2024-2028 |
USD 507 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
20.27 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 39% |
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Key countries |
US, China, UK, Japan, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Access Industries Inc., Alibaba Group Holding Ltd., Alphabet Inc., Amazon.com Inc., Apple Inc., AT and T Inc., Baidu Inc., Balaji Telefilms Ltd., Brightcove Inc., British Broadcasting Corp., Eros International Media Ltd., Fox Corp., fuboTV Inc., Hulu LLC, Netflix Inc., Philo Inc., Sling TV LLC, Spotify Technology SA, Tencent Holdings Ltd., and The Walt Disney Co. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Revenue
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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