OTT content market is estimated to witness high growth, owing to rising smartphone penetration and growing consumption of streaming services
Global OTT content market is estimated to be valued at US$ 253.14 Bn in 2024, exhibiting a CAGR of 15.2% over the forecast period 2024-2031.
Global OTT content market growth is driven by increasing preference for on-demand video streaming among users. Expanding internet penetration has allowed users to access and stream content anytime, anywhere on their smartphone, tablet, smart TV or laptop.
Market Dynamics:
Global OTT content market growth is driven by rising smartphone penetration and growing consumption of streaming services. Increased access to high-speed internet has encouraged video streaming through smartphones. OTT platforms are launching their mobile apps to provide seamless video streaming experience regardless of the device or location of users. This has boosted the adoption of OTT video services worldwide. Furthermore, users are opting for OTT platforms due to the availability of large libraries of streaming content including movies, TV shows, news and live events. OTT content providers are investing heavily in producing original content in local languages to target different demographics successfully. Such efforts allow them to gain new subscribers and strengthen their market position.
Market Drivers
Increasing Penetration of Smart Devices and Internet Connectivity
Global OTT content market growth is driven by increasing penetration of smart devices like smartphones, tablets, smart TVs, and others and high-speed internet connectivity globally. The number of internet users worldwide was more than 4 billion in 2019 and this number is projected to increase in the near future. With more people getting online on their smart devices, there has been huge demand for consuming digital content like videos, music, podcasts, and others on these devices. OTT platforms are capitalizing on the rapidly growing online audience by making their content accessible across a wide range of devices.
Evolving Content Consumption Patterns of Viewers
Evolving content consumption patterns and habits of viewers can also drive the market growth. Compared to traditional television, OTT services offer a highly personalized and on-demand viewing experience to the viewers. Viewers now expect to watch content of their choice, whenever and wherever these people want. People do not want to be restricted by fixed programming or timing of television. OTT platforms are effectively catering to the evolving behavior and demands of audiences. Viewers are increasingly adopting OTT services due to the flexibility and diverse content offerings they provide. This shift in viewer preferences is a significant driver fueling the growth of the OTT market.
Market Restraints
Piracy and Lack of Regulations
Piracy of copyrighted digital content can hamper the market growth. Due to the lack of strong regulations in many regions, pirated or illegally distributed content is easily available and rampant online. Viewers in some regions and countries prefer accessing content through pirated means instead of paying subscriptions. This affects the revenues and potential customer base expansion of legal OTT players. Establishing effective anti-piracy laws and regulations globally is also challenging.
Network Infrastructure Constraints in Emerging Markets
Inadequate network infrastructure and low broadband penetration present in many emerging market regions can hamper the market growth. Since OTT platforms largely depend on high-speed internet to deliver seamless video streaming experience, network constraints can negatively impact user experience and adoption rates in these areas. This acts as a barrier for OTT services to fully capitalize the market potential in the emerging markets.
Market Opportunities
Scope for Regional Expansion
Expanding their regional footprint can offer growth opportunities for OTT players. While some markets like North America, Europe and certain parts of Asia are highly penetrated, many other regions representing immense future potential remain untapped. Areas like Latin America, Africa, Middle East, Central and Eastern Europe provide huge opportunities for OTT services to scale up their user base and revenues. Localizing offerings as per regional content preferences and customizing business models can offer new growth opportunities.
Monetizing other Revenue Streams
Another significant opportunity for OTT platforms lies in evolving and experimenting with innovative business models to diversify revenue streams beyond traditional subscription-based models. By leveraging areas such as advertising, e-commerce, and live streaming, OTT platforms can supplement core revenues strategically. For instance, integrating commerce capabilities to allow direct purchases of products or services featured in content, or sponsoring virtual live concerts and events, can effectively tap non-subscription revenue streams. This diversification can significantly boost the profitability prospects of the OTT sector in the long run.
Link: https://www.coherentmarketinsights.com/market-insight/ott-content-market-4697
Key Developments
- On March 7, 2024, government of kerala launched CSpace, India's first government-owned OTT platform, to promote cultural and artistic content while ensuring transparency. Operating on a pay-per-view model, users can watch films, shorts, documentaries, and other content in low price. Managed by the Kerala State Film Development Corporation (KSFDC), CSpace showcases award-winning films, short films, and documentaries that highlight artistic and cultural merit, providing a unique platform for lesser-known but valuable content.
- In September 2021, Akamai Technologies, Inc., an American delivery company that provides content delivery network (CDN), cybersecurity, DDoS mitigation, and cloud services launched Learn Akamai, a free, on-demand learning platform aimed at empowering customers to effectively utilize Akamai solutions. This platform provides customers with the necessary tools and knowledge to maximize the benefits of Akamai solutions efficiently.
- In September 2020, Limelight Networks, a leading provider of content delivery network (CDN) and edge cloud services announced a strategic partnership with SimulTV, a video streaming service that offers a wide range of live and on-demand content to users worldwide, to deliver over 130 live online channels globally, enhancing the streaming experience for users worldwide
Key Players
Amazon.com, Inc., Apple Inc., AT&T Inc., BBC Studios, CANAL+ Group, Comcast Corporation, Eros International Plc, Hulu LLC, iQIYI, Inc., MEGOGO, Netflix Japan Inc., Netflix, Inc., Rakuten Group, Inc., Sony Pictures Entertainment Inc., Star India Private Limited, Tencent Holdings Limited, The Walt Disney Company, Warner Bros. Discovery, Youku Tudou Inc., YouTube LLC
