According to the research report, Global Over The Top (OTT) Market Overview, 2023-28 the market is projected to reach the market size of USD 490.13 by 2028, increasing from USD 210.13 Billion in 2022. The overall market is projected to grow with promising CAGR of 15.72% CAGR for 2023-28.
Increasing adoption of OTT can be attributed to the narrow genre choices, 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. This offered the users the flexibility to view varied content.
Also, affordable rates of high-speed internet across emerging economies led to a massive increase in the adoption rates of subscription services, according to user convenience. This reflects key consumer behaviour in terms of smaller size and narrower content of OTT services, leading to wallet fragmentation (flexible payment models), thereby pushing buying decisions flexibly from the household to the individual level.
The OTT media services market can be segregated based on revenue model into (AVOD, SVOD and TVOD). Among them, SVOD segment is expected to dominate the market during the forecast period. The expansion of the OTT industry has been fuelled by the availability of a wide range of streaming content and the simplicity of viewing through various devices and platforms. Furthermore, the content is now available in local languages, significantly influencing customers’ choice to use OTT services.
During the forecast period, the demand for OTT media services is expected to rise due to the rising disposable income. This signifies a rise in consumer spending power. With that, the consumer prefers to buy different subscriptions for streaming OTT services on various devices such as television, smartphones, etc.
Moreover, according to the data provided by the business standard, more than 665 million households have smart TV in their homes, significantly fuelling the demand for OTT media services in the country. The onset of the COVID-19 pandemic positively impacted the OTT landscape, with audiences consuming more content at home via OTT devices.
As per the findings, 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.
The crucial factors that are primarily contributing to the growth of the market comprise trend towards on-demand video streaming service and significant investment by OTT media companies.
Apart from Tubi TV, TEGNA, Inc. also invested in Vizbee and a B2B mobile to TV continuity platform. Like Tubi TV, Premion will also take benefit from innovative advertising platform of Vizbee that will provide further opportunities for their clients. With such investment, the company is intended to expand the reach of its OTT content to the targeted customers. This, in turn, will enable the company to increase its return on investment (ROI) earned through OTT content and thereby driving the growth of the market. However, the high cost of OTT subscription is a major factor hindering the growth of the market.
Major Companies present in the market:
Netflix, Inc, The Walt Disney Company, Apple, Inc, Amazon.com, Inc., Paramount Global, Warnermedia Direct, Llc, Sling Tv Llc, Rakuten Group, Inc, Kakao Entertainment Co, Ltd.
Considered in this report
- Geography: Global
- Historic year: 2017
- Base year: 2022
- Estimated year: 2023
- Forecast year: 2028
Aspects covered in this report
- Global Over The Top (OTT) market with its value and forecast along with its segments
- Region-wise Over The Top (OTT) market analysis
- Various drivers and challenges
- On-going trends and developments
- Top profiled companies
- Strategic recommendation
Countries covered in the report:
- North America
- South America
- Middle-East & Africa
- AVOD (Advertising-based Video On Demand)
- SVOD (Subscription Video on Demand)
- TVOD (Transactional Video on Demand)
By Device Type:
- Smartphones and Tablets
- Desktops and Laptops
- Smart TVs & Set-Top Box
- Gaming Consoles & Streaming Devices
By Content Type:
- Video Streaming
- Game Streaming
- Audio Streaming
By Service Verticals:
- Media and Entertainment
- Education and Learning
- Service Utilities
By User Type:
By Component Type: