Global Over The Top (OTT) Market Overview, 2023-28

Over the top (OTT) is a film and television content platform provided via a high-speed internet connection instead of a cable or satellite provider-based platform. OTT adoption has significantly aided the video, music, podcast, and audio streaming category. Increasing adoption can be attributed to narrow genre choices, packaging flexibility, wider device availability, internet penetration, and lower costs. Furthermore, the rising demand for customized content led to significant adoption rates of OTT devices. Consumers want to have the freedom of choosing the genre and watch the content as per their comfort and flexibility. This has driven the adoption of video on demand services and thus home entertainment has made its way via streaming services. Localization of content, a gamut of choices with regards to genre, titles, personalization, and flexibility of viewing on any device at any place and anytime has provided a seamless experience to viewers. From an OTT services provider perspective, such deep consumer insights gleaned from OTT apps helps them tailor their offerings by making data-driven decisions. According to the research report, “Global Over The Top (OTT) Market Overview, 2023-28” published by Bonafide Research, the market is projected to reach the market size of USD 490.13 by 2028, increasing from USD 210.13 Billion in 2022. The overall market is projected to grow with promising CAGR of 15.72% CAGR for 2023-28. Increasing adoption of OTT can be attributed to the narrow genre choices, flexibility, wider device availability, internet penetration, and overall lower costs. Furthermore, the rising demand for customized content led to significant adoption rates of OTT devices. This offered the users the flexibility to view varied content. Also, affordable rates of high-speed internet across emerging economies led to a massive increase in the adoption rates of subscription services, according to user convenience. This reflects key consumer behaviour in terms of smaller size and narrower content of OTT services, leading to wallet fragmentation (flexible payment models), thereby pushing buying decisions flexibly from the household to the individual level.

The OTT media services market can be segregated based on revenue model into (AVOD, SVOD and TVOD). Among them, SVOD segment is expected to dominate the market during the forecast period. The expansion of the OTT industry has been fuelled by the availability of a wide range of streaming content and the simplicity of viewing through various devices and platforms. Furthermore, the content is now available in local languages, significantly influencing customers’ choice to use OTT services. During the forecast period, the demand for OTT media services is expected to rise due to the rising disposable income. This signifies a rise in consumer spending power. With that, the consumer prefers to buy different subscriptions for streaming OTT services 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. The onset of the COVID-19 pandemic positively impacted the OTT landscape, with audiences consuming more content at home via OTT devices. As per the findings, trends of the COVID-19 impact on subscriber acquisition rates from March 1-31, 2020, in comparison to the last 12 months, suggested that the global subscription growth rate for OTT Video Streaming companies grew 7x in March 2020, as compared to the growth rate over the previous 12 months. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. With the increasing change in customers’ social behaviour, which is shifting from traditional subscriptions to broadcasting services and to over-the-top (OTT) on-demand video and music subscriptions every year, OTT streaming in the forecast period is expected to grow at a very fast pace. Various segments of the population have started using video streaming services instead of regular television for entertainment due to added benefits such as on-demand services and ease of access. Countries such as India and China are expected to see an exponential rise in the number of content streaming users in a video on streaming and pay-per-view services. In 2020, OTT content streaming service, Netflix, expects to close the year with 4.6 million paid customers. Thus, an increase in customer base is expected to boost the growth of the OTT streaming market during the forecast period. The over the top content (OTT) streaming market includes revenues earned by entities by providing content/video streaming services through the internet. It includes the streaming services of T movies, sitcoms, dramas, reality shows, talk shows, game shows, news programs, children’s programs, art, sports programs, documentaries, animated cartoons, and instructional videos. Examples of well-known OTT players include Apple TV, iTunes, Netflix, Roku, Hulu, and Amazon among others. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. In addition to that, increased smartphone adoption and the availability of wireless broadband is driving the over the top market growth. Internet service providers are offering enhanced broadband connectivity at an affordable price, enabling consumers to stream videos and download content at a high speed. With the rise in mobile workforce and smartphone users, companies are providing customers accessible platforms. The unceasing rise in content and globalization has forced companies to enable the consolidation of content by category. The increasing demand for these services has led to platform providers enhancing their offerings to keep the audience engaged and to remain competitive in the over the top (OTT) market. Moreover, several organizations are widely employing cloud-based solutions for implementing the central repository due to the rising complexity related to managing & maintaining the content.

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Manmayi Raval

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The crucial factors that are primarily contributing to the growth of the market comprise trend towards on-demand video streaming service and significant investment by OTT media companies. For instance, in January 2018, TEGNA, Inc. declared strategic investment in Tubi TV, a free streaming and TV movie network. This investment aimed to strengthen the position of TEGNA, Inc. and establishing leadership while providing access to local advertising in long-form OTT content to the marketers. Premion, a division of Tegna, Inc. will broaden its current relationship with Tubi TV that enables to effectively serve advertising clients. Furthermore, Tubi TV has a considerable number of premium entertainment content with over 7,500 TV series and movies available every month. Under the agreement, Tubi TV will allocate local content of TEGNA, Inc. across its platform. It will offer localized news and other digital content to the viewers from TEGNA stations. With this transaction, TEGNA, Inc. will constantly drive Premion’s growth and will leverage their ability to offer high-performing and unique ads as compared to others. This represents that both the companies have been sharing a goal to offer innovative ad solution under an unparalleled combination of premium content. Apart from Tubi TV, TEGNA, Inc. also invested in Vizbee and a B2B mobile to TV continuity platform. Like Tubi TV, Premion will also take benefit from innovative advertising platform of Vizbee that will provide further opportunities for their clients. With such investment, the company is intended to expand the reach of its OTT content to the targeted customers. This, in turn, will enable the company to increase its return on investment (ROI) earned through OTT content and thereby driving the growth of the market. However, the high cost of OTT subscription is a major factor hindering the growth of the market. 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

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Considered in this report • Geography: Global • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • Global Over The Top (OTT) market with its value and forecast along with its segments • Region-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: • North America • Europe • Asia-Pacific • South America • Middle-East & Africa 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.