The
global OTT media services market was valued USD 117.59 billion in 2021 and is
projected to grow at CAGR of over 14.56% through 2028 owing to the growing
number of audiences which is fuelling and expected to further increase the
revenue generation. Moreover, OTT has drawn a sizable group of users from all
over the world, variety of OTT platforms gained a significant surge in their
respective revenues. For instance, Netflix's total revenue in the third quarter
of 2022 was close to USD7.93 billion, up from roughly USD7.48 billion in the
corresponding quarter of 2021. Moreover, in the Asia-Pacific region, about 1.43
million new paying users were added, and the region witnessed the Netflix
third-quarter revenue which was increased by 19%, from USD834 million to USD889
million. Its average paid membership increased by 23% year over year,
from 30.05 million to 36.23 million.
The Global OTT Media Services Market is mainly driven by ease of
viewing through different devices and platforms, a variety of content, and
technological advancements. The expansion of the OTT industry has been fuelled
by the availability of a wide range of streaming content in addition with
different languages and the simplicity of viewing through various devices and
platforms such as smartphones,
smart TVs, laptops, etc., are the factors which are significantly influencing customers' choice to shift towards OTT
media services from the traditional broadcast network.
During the forecast period, the demand for OTT media services is
expected to significantly grow in the forecasted period with the rise in
consumer spending power, where the consumer are now preferring to purchase
different subscriptions for streaming OTT services in order to avail wide range
of web series, movies,
live streaming and other media content on various
devices such as television, smartphones, etc. Moreover, according to the
data provided by the business standard, more than 665 million households have
smart tv in their homes, significantly fuelling the demand for OTT media
services in the country.
Due to the growing number of paid subscribers in the United
States, the North American region, which previously dominated the global market
for OTT media services, is currently experiencing rapid growth. For a number of
reasons, including increasing smart TV penetration and the accessibility of
various devices for streaming OTT content, the United States is the market
leader in North America. For instance, in the United States and Canada, Netflix
had 73.39 million subscribers in 2022. Furthermore, seamless streaming is
possible via OTT platforms on connected TV devices and smart TVs. The market
for OTT media services in the area is expanding as 71% of American households,
up from 58% in 2020, will have a smart TV by 2022.
The COVID-19 pandemic, which placed millions of people under
lockdown, had a moderate impact on OTT media services globally. The OTT
industry profited from cheaper subscription fees, more convenient internet
access, and more time spent at home as binge-watching emerged as the popular
trend. OTT usage increased to two to three hours per day during the COVID-19
period, according to several published reports. Additionally, eight billion
hours of over-the-top (OTT) content were streamed each month from 180 million
users in Southeast Asia, making OTT one of the fastest-growing media
channels in the region by 2020.
Broadband usage and the
adoption of smart devices are driving market expansion Currently, there are more
than six billion active smartphone subscribers globally. Viewers can watch
content whenever, wherever, and on their preferred device by simply connecting
their smart devices to the subscribed OTT services. However, the popularity of
smart gadgets like TV sticks and smart TVs is accelerating market expansion.
The expansion of over-the-top
(OTT) services is primarily being driven by an increase in broadband
penetration. An growth in internet users and their access to over-the-top (OTT)
material like video, music streaming, and VoIP was brought on by high speed
broadband internet access. This will increase the demand for over-the-top (OTT)
content and lead the global OTT market to grow.
Availability of OTT content
in different local languages fueling the market growth
OTT services are becoming increasingly
popular because of the availability of content dubbed in many local languages,
allowing consumers to understand the content more readily and helping them
engage with the story. Furthermore, OTT streaming media firms are attempting to
provide subtitles in additional languages so that any consumer anywhere in the
world can access and enjoy the content. Additionally, Netflix, Inc. acquired
Animal Logic Group of Companies, an animation studio, in 2022; with this
acquisition, the company looks forward to strengthening its market in the
animation business.
Pandemic accelerated the
market growth
COVID-19 boosted OTT media
providers because people were stuck at home, and OTT streaming content provided
them with some entertainment. For instance, The Walt Disney Company launched it
streaming services in Europe and gained more than 22 million subscribers, which
almost doubled the company’s global subscribers, as quoted by the Guardian.
Furthermore, OTT pricing is quite reasonable, as it is provided over the cheap
internet without the need for a traditional broadcast or cable video
infrastructure. The market for OTT media services has also benefited from
increased broadband penetration.
Rising Market Competition Hindering
the Market Growth
The OTT media service sector
is undergoing intense competition because new service providers offer content
at lower prices than current providers. Furthermore, service providers have
begun to deliver new content they have created, which might become a disadvantage
because the web series or movie may fail, and their money would be wasted.
Additionally, the absence of
technological specialists and qualified professionals in both developed and
undeveloped nations would hinder the market's expansion. The high expenses
associated with using and obtaining the services will slow down the
market's expansion. Strong infrastructure facilities and poor internet service,
which affect image and audio quality depending on the internet connection, are
additional factors that have an impact on market growth. Additionally, the
presence of cheaper alternatives like satellite or cable-based programming is
projected to have a negative impact on the expansion of the trade during the
forecast period.
Download Free Sample Report
Market Segmentation
The Global OTT Media Services
Market is segmented based on Type, device type, region, and company. Based on
Type, the market is further segmented into AVOD, SVOD and TVOD. Based on device
type, the Global OTT Media Services Market is segmented into Smart TVs &
Set-Top Box, Mobile Devices & Computers/Laptops/Laptops, Gaming Consoles
& Streaming Devices. Based on region, the market is divided into North
America, Asia Pacific, Europe, South America, Middle East and Africa.
Company Profiles
Netflix, Inc., The Walt
Disney Company, Apple Inc., Amazon.com, Inc., Paramount Global, Alphabet Inc.
(YouTube), WarnerMedia Direct, LLC. (HBO Max), Sling TV L.L.C., Rakuten Group,
Inc., Kakao Entertainment Co., Ltd. are among the top players operating in the
global OTT media services market.
|
Attribute
|
Details
|
|
Market
Size Value in 2022
|
USD133.36
Billion
|
|
Revenue
Forecast in 2028
|
USD299.12
Billion
|
|
Growth
Rate
|
14.56%
|
|
United
States Market Size in 2028
|
USD133.80
Billion
|
|
Base Year
|
2022
|
|
Historical
Years
|
2018 –
2021
|
|
Estimated Year
|
2023
|
|
Forecast Period
|
2024 – 2028
|
|
Quantitative Units
|
Revenue
in USD Billion and CAGR for 2018-2021 and 2023E-2028F
|
|
Report Coverage
|
Revenue forecast, company
share, competitive landscape, growth factors, and trends
|
|
Segments Covered
|
·
Type
·
Device Type
·
Region
·
Company
|
|
Regional Scope
|
North
America, Europe, Asia-Pacific, Middle East & Africa and South America
|
|
Key Companies Profiled
|
Netflix, Inc., Amazon.com, Inc, Alphabet Inc., The
Walt Disney Company, Hulu, LLC, Apple, Inc. Rakuten, Inc., Roku, Inc., Kakao
Corp., Sling TV and others.
|
|
Customization
Scope
|
10% free report
customization with purchase. Addition or alteration to country, regional
& segment scope.
|
|
Pricing and Purchase Options
|
Avail customized purchase options to meet your
exact research needs. Explore purchase options
|
|
Delivery Format
|
PDF and Excel
through Email (We can also provide the editable version of the report in
PPT/pdf format on special request)
|
Report Scope:
In this report, Global OTT
Media Services Market has been segmented into following categories, in addition
to the industry trends which have also been detailed below:
·
Global
OTT Media Services Market, By Type:
o
AVOD
o
SVOD
o
TVOD
·
Global
OTT Media Services Market, By Device Type:
o Smart TVs & Set-Top Box
o Mobile Devices & Computers/Laptops
o Gaming Consoles & Streaming
Devices
·
Global
OTT Media Services Market, By Region:
o
North
America
§ United States
§ Canada
§ Mexico
o
Asia-Pacific
§ China
§ Japan
§ South Korea
§ India
§ Australia
§ Indonesia
§ Vietnam
o
Europe
§ United Kingdom
§ Germany
§ France
§ Italy
§ Spain
§ Norway
o
South
America
§ Brazil
§ Argentina
§ Colombia
o
Middle
East & Africa
§ South Africa
§ UAE
§ Saudi Arabia
§ Turkey
§ Egypt
Competitive
Landscape
Company Profiles: Detailed analysis of
the major companies present in Global OTT Media Services Market.
Available Customizations:
With the given market data, TechSci
Research offers customizations according to a company’s specific needs. The
following customization options are available for the report:
Company Information
Detailed analysis and profiling of
additional market players (up to five).