North America Over The Top (OTT) Market Outlook, 2028

North America over the top market is witnessing high growth due to the availability of high-speed internet. In the region, content generation, consumption, and distribution are disrupting television. In 2022, there were around 200 Million OTT subscriptions in the United States alone, showcasing that the internet is increasingly overtaking television as the standard way customers consumes media. Growing acquisitions and partnerships in the region are reshaping the video media landscape. Live streaming & short-form contents are witnessing a rise in demand. Viewers are spending eight times more time on live streaming in comparison with on-demand videos. In 2018, live streaming witnessed a hike, with major events such as the FIFA World Cup and Academy Awards being extensively covered. Owing to such trends, companies are experimenting with new business and subscription models for content monetization, driving the over the top (OTT) market growth. The OTT market is growing in North America owing to the presence of key market players such as Facebook, Netflix, Amazon, Microsoft, Google, YouTube, Apple, Home Box Office, Roku, IndieFlix, Vudu, and Hulu in the region. According to the report, “North America Over The Top (OTT) Market Outlook, 2028” published by the Bonafide research, the market is anticipated to reach the market size of USD 193.58 Billion by 2028. Owing to high demand of over the top (OTT) services in United States and Canada, North America dominates the global over the top (OTT) services market. The rapid development of the region can be attributed to the increasing penetration of high-speed internet and usage of smartphones in the region. Additionally, the increasing substantial fund and investment in the content creation sector is anticipated to propel the industry in the forecast period. For instance, as per telecom advisory services LLC, Amazon.com, Inc. and Netflix, Inc. were expected to invest in TV shows and programming. Peacock, Disney+,Quibi, AppleTV, HBO max and others are some of the newly entered platform provider are driving the growth of the market. North America demonstrated a noticeable market growth with a substantial average home viewing value of OTT content in a month during the historic years and is anticipated to prevail in the same trend during the forecast period. This growth attributes to the significant rise in Wi-Fi connections & emergence of 5G connectivity across the region. Besides, substantial investment in the industry entwined with the presence of new entrants into the OTT space is also curating the fundamentals of the market across North America.

Based on the countries, the North America OTT market is segmented into United States, Canada and Mexico. The US OTT market currently holds the status of being the “streaming mega-hub of the world” with over 90% market share in North America market with US broadband households owning at least one streaming video product that is connected to the internet. Due to the growing number of paid subscribers in the United States, the North American region 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 over 73 Million subscribers in 2022. Furthermore, seamless streaming is possible via OTT platforms on connected TV devices and smart TVs. Additionally; OTT for sports is becoming increasingly attractive. Growing investments in content acquisition across this domain highlight how numerous companies are entering the OTT space. For instance, as of August 2020, Amazon Prime announced its offerings for gamers via the launch of a service called Prime Gaming. Owing to the earlier streaming services for movies and TV shows, Twitch Prime/Prime Gaming is expected to provide free games, game content, and a free Twitch channel subscription, as a part of its standard Prime membership. The company additionally attributed this action to the growing market for new content for games in North America. Similarly, broadcasters, pay-TV operators, and content owners in the TV environment represent both a challenge and an opportunity. These industry players are increasingly looking for new ways to reach, engage, and retain fragmented audiences for their content. With a rapid mix of linear and OTT providers, the US media industry has been on the edge of diversifying more of its content offerings across its direct-to-consumer (DTC) channels like, Disney sought after bundling its ESPN+ and Hulu. Several streaming service providers present in this region are collaborating with smart speaker manufacturers to integrate audio and video streaming services into their systems. In addition, Amazon.com, Apple, and Google are launching smart speakers integrated with streaming platforms. This is boosting the growth of the OTT market in the region. According to the report, the market is segmented into various types of Over The Top (OTT) market, such as AVOD (Advertising-based Video On Demand), SVOD (Subscription Video on Demand), TVOD (Transactional Video on Demand) and others. Among them, SVOD (Subscription Video on Demand) is leading the market with higher market share in 2022 and is expected to continue the dominance over the forecast period. Constantly increasing subscriptions across the USA is majorly driving the SVOD market. High disposable income coupled with increasing spending capacity on media-rich home entertainment services is supporting the market growth. According to the findings, personal disposable income in the U.S has increased by two percent in March 2021 as compared to February 2021. The rise in disposable income resulted in higher demand for household entertainment devices such as television and home theatre sets.

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Manmayi Raval

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Further, based on the service verticals, the North America market is segmented into media and entertainment, education and learning, gaming and service utilities. Among them, media and entertainment segment is projected to acquire higher market growth by the upcoming timeframe. Over-the-top (OTT) media services are growing rapidly in global markets fuelled by increasing mobile device penetration and increased adoption of cloud-based services in key sectors. These include finance, e-commerce, health, education, gaming and sports. North America remains the largest regional market for OTT by revenues, where deployment of advanced broadband networks is a key driver. The proliferation of internet services and broadband along with rising preference for HD channels and on-demand content will accelerate the market demand. The evolution of technology in the digital arena and introduction of flat-screen OLED TV has played a pivotal role in changing TV viewership trends. Introduction of IPTV set top box owing to the positive industry outlook of OTT platforms, such as Netflix, Hulu, Amazon Prime, and Disney + Hotstar, will contribute significantly to the market revenue. Based on the device type, smart TVs and set-top box segment is leading the overall market in 2022. In 2020 and 2021, the outbreak of COVID-19 positively impacted the growth of the OTT market in North America. Owing to the implementation of lockdown restrictions in 2020, over 14 Million new homes in the US streamed OTT content in a month between January 2020 and June 2021. Furthermore, more than 80% of American households are OTT subscribers. Therefore, the overall OTT market is projected to grow significantly during the forecast period. The adoption of business strategies by key players in the animation and gaming industry and the addition of new video content and games in their portfolios are expected to increase the demand for OTT services in the regional OTT market during the forecast period. Such factors are expected to drive the growth of the North America OTT market during the forecast period. With the increasing inclusion of linear and live content as part of OTT video service offerings and the addition of OTT features to traditional pay-TV service propositions, the lines that separate pay-TV and OTT video have become more diffuse, increasing competition levels in the video entertainment market. Video consumption is increasingly being driven by content as a result of broadband connectivity becoming ubiquitous and the range of OTT video entertainment options available to the consumer rapidly expanding. Based on the content type, video streaming segment is leading the market in 2022 with highest revenue generation. In North America, internet plans vary in terms of speed, data usage limit, and price. Most residential users can choose from a range of plans offering speeds ranging from 25 Mbps to 1 Gbps, with unlimited data options becoming more common. The prices for these plans can range from $30 to $100 or more per month, depending on the provider and the region. Some providers may offer bundled packages that include TV and phone services along with internet. Additionally, some rural areas may have limited internet options, with lower speeds and higher prices compared to more urban areas. Prominent players in the North America set top box industry include Samsung Electronics Co. Ltd, Cosship Electronics Co. Ltd., Technicolor USA Inc., Huawei, Xiaomi, and Commscope Inc. Incumbent players are emphasizing on integrating artificial intelligence and voice interfaces into set-top boxes with sleek design. For instance, in 2017, Xiaomi launched Mi Box 4 Smart TV set-top box in the U.S. market. The set top boxes support high dynamic range video and include Bluetooth voice remote. The Mi Box recommends video based on user’s personal YouTube and Google Play preference.

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There are several start-ups operating in the OTT (Over-the-Top) media space in North America. Some of the most notable ones include: • Quibi: A short-form video streaming platform that focuses on delivering content specifically designed for mobile devices. • Peacock: A streaming service launched by NBCUniversal that offers a wide range of TV shows, movies, and original content. • Philo: A live TV and on-demand streaming platform that offers a selection of popular cable TV channels at a lower price point than other streaming services. • Hayu: A streaming service that specializes in reality TV, offering a wide selection of reality shows and documentaries. • Disney+: A streaming service from Disney that offers a wide range of movies and TV shows from Disney, Pixar, Marvel, Star Wars, and National Geographic, among others. • Madhive: Madhive is the leading technology company engineered for modern TV advertising. Through its self-service platform, advertisers can seamlessly customize and automate the buying process into one operating system. This allows advertisers to plan, target, activate, and measure their campaigns with greater simplicity, accountability, reach, and control. • NPAW: NPAW is the leading video intelligence company helping online streaming services grow. A global leader in its space, NPAW has over a decade of experience developing groundbreaking and scalable analytics solutions to optimize full service performance and user engagement to build media experiences that maximize revenue. • Gizmeon: All in one OTT platform - Launch quality OTT services with ease – Rapidly deploy OTT services and reduce the technical complexity with quality building block solutions that meet all the needs of user, wherever they are on OTT journey. • Eon Media: Eon Media Delivers next-gen video streaming solutions for Media and Telecom companies. It also includes net zero latency for live streaming dynamic metadata for video content parallel and real-time on-demand content processing. • Publica: Publica is the leading Advertising Platform for Connected Television. As audiences shift from Cable TV to Digital, Publica’s goal is to power the next generation of ad experiences on the king of screens. • Powr.TV: Powr.TV is currently powering new live streaming and app technology for the largest media companies in the world. Powr.TV is positioned to continue its growth as cord-cutting and streaming services continue growing at an unpresented rate. • CM.com: CM.com is a Global CPaaS solutions for enterprise customers to communicate with people on any channel. These are just a few examples of the many start-ups operating in the OTT media space in North America, and the list is constantly growing as new companies enter the market and existing ones expand their offerings. Major Companies present in the market: Netflix, Inc, The Walt Disney Company, Apple, Inc, Amazon.com, Inc., Paramount Global, Warnermedia Direct, Llc, Sling Tv Llc, Rakuten Group, Inc, Kakao Entertainment Co, Ltd, Alphabet Inc (Google, Youtube), Microsoft Corporation, Telstra Corporation Ltd, Roku, Inc, Meta Platforms, Inc., Indieflix Gropu Inc., Fandango Media, llc, iQIYI, Inc., home box office, Tencent Considered in this report • Geography: North America • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • North America Over The Top (OTT) market with its value and forecast along with its segments • Country-wise Over The Top (OTT) market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation Countries covered in the report: • United States • Canada • Mexico By Type: • AVOD (Advertising-based Video On Demand) • SVOD (Subscription Video on Demand) • TVOD (Transactional Video on Demand) • Others By Device Type: • Smartphones and Tablets • Desktops and Laptops • Smart TVs & Set-Top Box • Gaming Consoles & Streaming Devices By Content Type: • Video Streaming • Game Streaming • Audio Streaming • Communication By Service Verticals: • Media and Entertainment • Education and Learning • Gaming • Service Utilities By User Type: • Personal • Commercial By Component Type: • Solution • Services The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Over The Top (OTT) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.