OTT stands for "over-the-top" and refers to any media service delivered directly to consumers over the internet, bypassing traditional cable or satellite TV providers. OTT media services are becoming increasingly popular as more people cut the cord and turn to stream services for their entertainment needs. For instance, OTT media services include Netflix, Hulu, Amazon Prime Video, Disney+, and many others. These services offer a wide range of content, from movies and TV shows to original programming, documentaries, and more.
The applications of OTT media services are vast and varied. For consumers, they provide a convenient way to access high-quality entertainment content from anywhere with an internet connection, on a variety of devices, and often for a fraction of the cost of traditional cable or satellite TV packages. For content creators and distributors, OTT media services offer a way to reach a global audience without the need for expensive broadcast infrastructure or deals with cable providers.
With the widespread availability of high-speed internet, more people than ever before have the bandwidth to stream video content online. The expansion of newer versions of devices such as smart TVs, smartphones, tablets, and other internet-connected devices along with broad-speed internet connection has made it easier than ever to access OTT media services on a variety of devices. Unlike traditional cable or satellite TV providers, OTT media services have the ability to reach a global audience without the need for expensive infrastructure or deals with local providers. This has promoted various entertainment influencers to reach out to stream their new release on the OTT platform. These days subscribers are drawn toward these OTT platforms since they are investing heavily in producing original programming. Hence, the demand for OTT services has increased due to all these benefits, at the same time consumers looking for flexible payment models, lower costs, and a wider variety of high-quality content. These established a huge market share for the OTT platform in the current year and are predicted to grow in the forecast period.
The Over the Top (OTT) Platforms Market has reached a value of 205.2 billion in 2022. This market is expected to grow from 239.67 billion in 2023 to 710.75 billion in 2030 with a CAGR of 16.8% in the forecast period of 2023-2030. This market is estimated based on different key pointers that attribute to the growth which are service types such as Transactional video-on-demand (TVoD), Advertising-Based Video-On-Demand (AVoD), and Subscription Video-On-Demand (SVoD), types including Game Streaming, Audio Streaming, Video Streaming, and Communication. The leading market players in the OTT platform service providers are Netflix, Inc., Roku, Inc., Amazon.com Inc., The Walt Disney Company, and Google LLC (YouTube).
Subscription video-on-demand (SVOD) has become increasingly popular due to several factors, including the availability of high-quality original content, pricing innovation, bundling, and partnerships with other companies. For instance, ErosNow users are the most engaged users, with 68% indicating that they watch content daily. Partnerships with companies like Xiaomi for pre-installation on smart TVs have also helped these platforms to reach a wider audience. Moreover, the functionalities provided by some OTT apps, such as messaging services, entertainment videos, music, and local or international news, have accelerated their adoption rate, making them a popular choice and enhancing the OTT platform market drastically in the recent year.
North American region holds a significant market share for the OTT platform market. This is due to the high availability of high-speed internet along with a large number of households subscribing to OTT services and spending a significant amount of time watching OTT content in the US, a prominent region in North America compared to Canada. Expanding the OTT services to the sports arena, traditional players adapted to the new competitive landscape, and find new ways to reach & engage audiences deliberately improving the market growth of various OTT platforms such as Peacock, Disney+, Apple TV, and HBO max in these regions.
One of the key factors that must be considered by OTT platform service providers is the availability of high-quality original content. Investing in producing and acquiring exclusive content can help differentiate your platform from others and attract more subscribers. Furthermore, these platforms could generate a vast amount of user data that can be used to inform content creation, marketing strategies, and product development. Analyzing this data can help service providers make more informed decisions and better understand their users.
Partnering with other companies can help expand the reach of this OTT platform and provide additional value to users. Examples of partnerships include pre-installation on smart TVs, bundling with other services or products, and collaborations with content creators. Offering flexible and adoptive services involving pricing and subscription options can help attract a wider audience. This could further drive the OTT platform market in the upcoming years.