|Study Period:||2019- 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
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The Over the Top (OTT) Market was valued at USD 101.42 Billion in 2020, and it is expected to reach USD 223.07 Billion by 2026, registering a CAGR of 13.87%, during the period of 2021 - 2026. The onset of the COVID-19 pandemic positively impacted the OTT landscape, with audiences consuming more content at home via OTT devices. This is likely to accelerate the growth of this format. The OTT opportunity is further deep when looking at the region’s mobile-first economy, combined with the rising OTT subscription rate. An increasing number of consumers have a digital TV in their pocket, which presents an exciting opportunity for media buyers looking to take advantage of changing consumer trends.
- 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. Currently, the OTT adoption aided the video, music, podcast, and audio streaming category significantly. Increasing adoption can be attributed to the narrow genre choices, packaging 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.
- Further, players offering OTT platforms services are no longer interested in being viewed as platforms just for accessing movies and TV shows but are also investing in the production and licensing of their content. Such a scenario has resulted in direct competition with traditional TV and among the OTT industry. The competition is further heightened with the deployment of advanced technologies within the platforms.
- Another report published by the World Advertising Research Center (WARC) based on the data from mobile trade body GSMA indicated that over 1.3 billion people are anticipated to access the internet via smartphone and PC by 2025. The growth of mobile-based internet users is also attributed to the rising adoption of 5G networks by the operators due to the consumption of content and related services, causing 4G LTE resources.
- The onset of the COVID-19 pandemic positively impacted the OTT landscape, with audiences consuming more content at home via OTT devices. As per Zuora’s Subscription Economy Index Report, 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.
- Also, the British Association for Screen Entertainment (BASE) data suggests that consumer spending on digital movie purchases grew by more than 87% during the COVID-19 pandemic lockdown period through June 30 to reach GBP 113 million (USD 148 million). While the growth was evident due to the lockdowns and consumers forced to stay at home, the data highlights huge gains from the OTT platforms.
Scope of the Report
An over-the-top (OTT) application is an app or service that avails a product over the Internet and bypasses traditional distribution practices. Services that are available over the top are most typically related to media and communication and are generally, if not always, lower in cost than the traditional method of delivery. The study outlines the key regional trends and provides insights into the OTT industry who focus on localization as a means of differentiation. The Over the Top (OTT) Market is segmented by Type of Service (SVOD, TVOD, AVOD) and Geography.
|By Type of Service|
|Middle East and Africa|
Key Market Trends
Increasing Adoption of Subscription video-on-demand (SVOD) Due to Smart TV Penetration
- According to Cisco, Connected TVs will grow third fastest (at a little less than a 6 percent CAGR), to 3.2 billion by 2023 after M2M connections and smartphones. Around 33% of people watch online videos on a Smart TV, with video-enabled apps compared to 23% who use a video game console.
- In India, the top 5 metro cities account for 55% of the total OTT video platform users, while Tier one cities account for another 36% of the users. As per the survey, Hotstar leads the Indian OTT video content market, followed by Amazon's Prime Video, SonyLIV, Netflix, Voot, Zee5, ALTBalaji, and ErosNow in terms of the percentage of respondents subscribed to each platform. ErosNow users were the most engaged users, with 68% of its users indicating that they watched content daily. The platform continues to thrive through partnerships. In India, it partnered with Xiaomi for pre-installation on smart TVs.
- Further, OnePlus ventured into the Indian smart TV market with the launch of the OnePlus TV. The device combined imagination and intelligence to seamlessly connect mobile and home networks for the future of interconnectivity. Hungama, Eros, and ZEE5 content have been deep-integrated into the OnePlus Play dashboard. Other content partners include Amazon Prime Video, Hotstar, SonyLiv, and YouTube. This significantly shall provide growth to the Subscription video-on-demand (SVOD) segment.
- In a country such as the United States, The Walt Disney Company announced it had reached 10 million subscribers upon initial launch, putting its Disney+ service fourth on the list. Also, Netflix had 69.97 million U.S. subscribers. The subscriber base in the United States accounts for around a third of Netflix's worldwide streaming subscriber base.
- Along with providing messaging services, some OTT apps also provide the functionalities that a broadcast channel provides to its customers. With a high adoption rate, users broadcast entertaining videos, music, local or international news to a large group of other users. This wide range of applicabilities is accelerating its adopted growth.
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North America Accounts for the Significant Market Share
- In the United States, 64 million homes are accustomed to OTT, with the average home viewing value is estimated at 86 hours of OTT content in a month. Furthermore, nearly 66% reach among homes with Wi-Fi, with OTT content genres primarily related to sports, education, and entertainment witnessing increasing developments.
- 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.
- Based on its earlier streaming services for movies and TV shows, the 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.
- Moreover, DAZN, a dedicated sports OTT service, shared plans on acquiring the National Football League (NFL) rights in the United States. In contrast, Amazon acquired streaming rights to Thursday Night Football on its Prime Video service.
- A player such as Brightcove Beacon addresses the challenge many content owners face due to the continuously expanding list of viewing devices by allowing customers to launch content on multiple platforms simultaneously. Recently, Brightcove Inc. introduced Brightcove Beacon, a new SaaS-based OTT platform. Brightcove Beacon empowers customers to deliver captivating OTT experiences on a breadth of devices, with the flexibility of multiple monetization models to fit any business need.
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The Over the Top (OTT) Market is fragmented as with many media and content companies jumping on the streaming TV bandwagon, the marketplace is becoming increasingly competitive, and it’s creating even more competition for high-quality content to keep viewers hooked. The companies are focusing on product innovation to gain consumer attention. Key players are Netflix Inc., Amazon.com, etc.
- September 2020 - Google announced that they are working on YouTube Shorts, which is a new way to watch and create on YouTube. Shorts is a new short-form video experience for creators and artists who want to shoot short, catchy videos using nothing but their mobile phones.
- October 2020 - Netflix Inc. partnered with Microsoft to help coders in their learning journey of Data Science and AI. Microsoft launched the Global Skills Initiative, aimed at helping 25 million people worldwide acquire new digital skills. It has launched new modules that are inspired by the new Netflix original, “Over the Moon. “ It will take the user through beginners’ concepts in data science, machine learning, and artificial intelligence.
- September 2021 - In Kenya, Netflix is releasing a new free Android mobile plan that will allow users to watch a restricted selection of its repertoire, including full seasons of certain shows. The Netflix mobile plan for Android allows users to join up without having to submit any financial information.
- March 2021 - With the help of Amazon Web Services, NBCUniversal International's reality on-demand OTT platform hayu gains personalization and data analysis. The business benefits are substantial, as hayu has improved its service's performance, viewer retention, and subscription income by implementing virtualized media processing capabilities from Amazon Web Services (AWS).
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Ecosystem Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growth in the adoption of smart devices & greater access to higher internet speeds
5.1.2 Ongoing shift towards commoditization of sporting & entertainment services coupled with growing competition among OTT providers
5.1.3 Increasing adoption of SVOD (subscription - based services) in emerging markets
5.2 Market Restraints
5.2.1 Growing Threat of Video Content Piracy and Security Threat of User Database Due to Spyware
5.3 Impact of COVID -19 on the OTT and TV industry
6. MARKET SEGMENTATION
6.1 By Type of Service
6.2 By Geography
6.2.1 North America
6.2.3 Asia Pacific
6.2.4 Latin America
6.2.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 Netflix, Inc.
7.1.2 Amazon.com Inc. (Prime Video)
7.1.3 The Walt Disney Company (Hulu)
7.1.4 Tencent Holdings Ltd
7.1.5 Roku Inc.
7.1.6 Google LLC (YouTube)
7.1.7 DAZN Group Limited
7.1.8 NBC Universal (Hayu)
7.1.9 PCCW Media Group (Viu)
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Global Over the Top (OTT) Market market is studied from 2019 - 2026.
What is the growth rate of Global Over the Top (OTT) Market?
The Global Over the Top (OTT) Market is growing at a CAGR of 13.87% over the next 5 years.
Which region has highest growth rate in Global Over the Top (OTT) Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Global Over the Top (OTT) Market?
North America holds highest share in 2020.
Who are the key players in Global Over the Top (OTT) Market?
Netflix, Inc., Roku, Inc., Amazon.com Inc. , The Walt Disney Company , Google LLC (YouTube) are the major companies operating in Global Over the Top (OTT) Market.