Over the top (OTT) market estimated to reach $434.5 billion by 2027 at a CAGR of 16.5%:
The global Over the Top Market size is projected to grow from USD 202.5 billion in 2022 to USD 434.5 billion by 2027, at a CAGR of 16.5% during the forecast period, according to a new report by MarketsandMarkets™.
Over-the-Top (OTT) services are used to deliver audio, video, rich media, and other media content over the internet without the involvement of any traditionally laid cable or broadcasting players. Various digital devices like smartphones, tablets, desktops, laptops, iptv and consoles through a wireless connection over the internet. OTT services include video streaming, audio streaming, game streaming and communication. Today, various verticals such as media and entertainment, education and learning, gaming and service utilities etc. have successfully adopted OTT services.
Due to the adoption of upcoming technologies such as Content Delivery Network (CDN), cloud storage, Artificial Intelligence (AI) bot service, and video analytics etc. Over the Top Market is able to attract new customer base year on year. Times have witnessed a drastic change in which the power of viewing the content is in the hands of the viewer rather than the earlier days when the viewers were confined to watch broadcasted content on TV. This change in content consumption is a major driver in the growth of the Over the Top Market. Personalization of content, comfort, freedom, and flexibility are the main focus of viewers and the content providers are paying keen attention to these to be relevant in the market.
By Type, the Video Streaming segment is leading the Over the Top Market in 2022. Due to the pandemic, people demanded new videos to be uploaded on the OTT platforms which were not related only to entertainment but to healthcare, news, information, education, tutorials etc. The pandemic gave rise to new small players in the OTT market which were focused on regional content and were adopted by the viewers at a high rate. Existing players such as Roku, Netflix, Amazon Prime, and Apple TV saw an exponential rise in subscribers. The subscription-based VoD is expected to grow at a substantial rate, with users expressing their willingness to pay for premium services for streaming content.
The advertised-based segment by monetization model is leading the Over the Top Market in 2022. Advertisement is a multi-million dollar industry and it has been embraced by the OTT market heavily. The reason lies mainly due to the ability of OTT platforms to directly reach the customers or end users during their personal and leisure time. The revenue generated through advertisements is used to offset production and hosting costs. Advertising models, such as pay-per-views, Cost Per Thousand (CPM), Cost Per Click (CPC), and Cost Per Acquisition (CPA) are being employed on various OTT platforms. Presence of a particular brand’s advertisement on a major OTT platform can impact the revenue of the advertiser greatly. Thus, OTT providers bank heavily on the same for their revenue.
In 2022, North America has the highest market share in the Over the Top Market. The adoption of OTT services in this region is high due to early technology adoption. North America also has production houses and content creators that provide OTT content globally. This creates an environment of high competition among the OTT vendors to deliver new and original content globally. This causes the OTT service market to flourish in this region. The high penetration of smartphones and smart devices in 2022 also is a major factor for high OTT service consumption. The end users subscribe to smartphone streaming services content for a hassle free experience. Acceleration in 5G technologies in this region acts as a catalyst and facilitates the OTT providers to provide better streaming services to end users. US and Canada are both developed nations in this region with high average income per person because of which people in these countries can easily afford OTT services. Also, the government initiatives and investments in technology in these areas are high due to stable economy. This again plays a major role for a boost in the Over the Top Market in this region. yahoo! news