United States OTT Market Trends

Statistics for the 2023 & 2024 United States OTT market trends, created by Mordor Intelligence™ Industry Reports. United States OTT trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

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Market Trends of United States OTT Industry

This section covers the major market trends shaping the US OTT Market according to our research experts:

High Penetration of Smart TV Witnesses a Significant Growth

  • Streaming content in the region has been intensifying as content owners like Disney go direct to consumers and Telcos (AT&T) and OTT-only operators like Amazon, to name a few. Simultaneously, the emergence of 4K for streaming has propelled OTT content growth to be made available across smart TV formats.
  • Consistent growth in streaming device usage, increasing internet penetration, and demand for smart TVs have provided lucrative opportunities for media companies to enter the Over the Top (OTT) industry. Several TV makers are introducing low-cost smart TVs. For instance, in April last year, Samsung Electronics Co. Ltd introduced its Neo QLED 8K smart TV line. This introduction comprised televisions with 65-inch and 85-inch screens. Samsung Electronics Co. Ltd also makes special deals that allow consumers to buy TVs at lower prices, creating demand for its products.
  • According to comScore, video consumption via connected TV among US customers grew by 26.5% in March last year compared to the previous year, exceeding 10.5 billion hours of watching each month. Online video consumption through mobile increased in March 2021, hitting 6.8 billion hours watched every month.
  • According to Media Play News, in the United States, internet-connected TV adoption climbed from 82% in 2021 to 87% in the last year. The growth in internet-connect TV adoption in the country is expected to increase content consumption at home.
  • With the COVID-19 outbreak and nationwide lockdowns, the hours spent on TV have been rising. This entails a positive growth outlook on a near-term basis. On the vendor front, Viacom is a significant vendor offering a direct-to-consumer (D2C) service on the back of Pluto TV, the US free streaming service the company bought recently.
United States OTT Market  :  Forecasted 8K Ultra HD TV unit shipments, United States, in Percentage, 2019-2022

SVOD Segment to Hold a Significant Market Share

  • Subscription Video on Demand (SVOD) is similar to traditional TV packages, allowing users to consume as much content as they desire at a flat monthly rate. Major services include Sky (plus its subsidiary Now TV), Amazon Prime Video, Netflix, and Hulu.
  • According to Digital Entertainment Group, in the United States, consumer expenditure on subscription video-on-demand (SVOD) climbed from USD 6.4 billion in the second quarter of 2021 to USD 7.7 billion in the third quarter of the last year. This is an increase of above one billion US dollars over the same time the previous year, demonstrating tremendous resilience in the face of the economic crisis.
  • More than 90% of the SVOD subscribers come from the US market alone in the North American region. The emergence of SVoD platforms is also helping to drive consumers' cord-cutting trends. The number of SVOD subscriptions in the United States will grow by more than 50% in the next five years. But it might not seem quite significant when that aggregate number is broken down by household.
  • The SVOD segment in the US OTT market is one of the significant segments; by 2025, the country is expected to witness a dozen platforms with more than 5 million paying subscribers-revealing just how ahead the US market is compared with the rest of the world. Growth for established players such as Amazon, Netflix, and Hulu will be affected due to intense competition from younger rivals such as Disney+, Peacock, and the augmented CBS All Access.
  • In the previous year, 83% of US customers used a subscription video-on-demand service, a roughly 20% rise in five years. Netflix is among the most popular SVOC platform. In the third quarter of the last year, the number of Netflix streaming customers in the United States surpassed 73 million.
United States OTT Market  :  Number of Netflix Paying Streaming Subscribers, United States, in Millions, Q3 2021 - Q3 2022

USA OTT Platforms Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)