According to Coherent Market Insights, the global OTT content market is estimated to be valued at US$ 101.2 billion in 2021 and is expected to exhibit a CAGR of 14.5 % over the forecast period (2021-2028).
An over-the-line content delivery network (CDN) is a broadband internet service available directly to users through the Internet. OTT bypasses traditional cable, satellite, and radio stations, the kinds of businesses that used to be distributors or controllers of these media. CDN technology distributes large quantities of IP content over large distances, saving users money on traditional media costs and opening the door to a new world of online entertainment. OTT software developers and marketers can now “rent” space on CDN networks for streaming video, audio, and multimedia files and have it all delivered wirelessly over the Internet to any user with an Internet connection. Companies and organizations ranging from private citizens to international corporations are realizing that it is easier and more cost-effective to create a website for the purpose of delivering videos, music, images, and other media to consumers over the Internet rather than for them to visit a physical location where they can rent a television set or pay for satellite or cable television.
1. Increasing adoption of smart devices and greater access to high-speed internet is expected to drive growth of the global OTT content market during the forecast period
OTT content can easily be accessed through a smartphone with a high-speed internet connection. The adoption of smart devices such as smartphones, tablets, and laptops has increased significantly in the recent past. As per the Pew Research Center, in 2019, around 81% of people in the U.S. had smartphones, increasing from 68% in 2015. According to the same source, tablet users in the U.S. increased from 34% in 2013 to 52% in 2019. Furthermore, high-speed internet penetration at competitive prices has also increased significantly over the years. According to the International Telecommunication Union (ITU), internet users across the globe reached 4 billion in 2019, increasing from 2.8 billion in 2014.
2. Availability of flexibility and ease-of-use is expected to propel the global OTT content market growth over the forecast period
OTT content can be accessed anytime with a smart device and high-speed internet connection. Unlike conventional television, OTT content is not scheduled and can be viewed at any time of the day. Furthermore, the content available is ad-free and thus, provides a seamless experience of entertainment to users. Besides, OTT content providers are offering their content in different languages, including regional with subtitles, thereby making the entire experience sophisticated.
1. Rising adoption of subscription-based video on demand (SVOD) in emerging economies can present lucrative growth opportunities
Video on demand is a media distribution system that enables users to access videos without conventional video playback devices and limitations of static broadcasting schedule. Over the years, the adoption of SVOD content has increased massively among consumers. Video platforms such as Netflix, Hulu, Amazon Prime Video, and HBO Max have emerged as the most popular SVOD services at a competitive price. Key companies in the market can capitalize on these opportunities and gain a competitive edge in the market.
2. Mergers and acquisitions among key companies can provide major business opportunities
Key companies in the over-the-top content services are focused on mergers and acquisitions, in order to expand their presence and gain a competitive advantage in the market. For instance, in May 2021, Amazon acquired MGM Studios for US$ 8.45 billion with the aim of boosting streaming services and competing with Netflix and Disney+. Furthermore, in May 2021, AT&T announced that its subsidiary WarnerMedia will complete a US$ 43 billion merger with Discovery.
1. North America Trends
Among regions, North America is expected to witness significant growth in the global OTT content market during the forecast period. This is owing to the presence of key market players such as Netflix, Hulu, HBO Max, Disney+, and Apple TV in the region. Furthermore, a number of streaming services are providing content in HD and 4K quality, which in turn, is expected to boost the regional market growth in the near future.
2. Asia Pacific Trends
Asia Pacific is expected to register lucrative growth, owing to telecommunication service providers offering lucrative data plans for OTT services. Furthermore, increasing penetration of smartphones and the internet is expected to boost the market growth over the forecast period.
Key companies involved in the global OTT content market are Netflix, Inc., Amazon.com Inc. (Prime Video), The Walt Disney Company (Hulu), Tencent Holdings Ltd, Google LLC (YouTube), NBC Universal (Hayu), and Apple Inc.
For instance, in September 2021, Amazon launched Prime Video Channels in India with access to Discovery+, Lionsgate Play, Eros Now, and many more add-on subscriptions. PR Newswire