The global over the top services market size is projected to grow from USD 44.54 billion in 2021 to USD 139.00 billion in 2028. The rising development of cutting-edge smart TVs by prominent manufacturers would help in lifting the customer experiences. TCL Electronics and Roku Inc., for instance, introduced their new smart TV in the U.K. in June 2021. It is equipped with enhanced picture quality, voice control assistance, and streaming channels.
As per a published report by Fortune Business Insights™, titled, “Over The Top (OTT) Services Market Size, Share & COVID-19 Impact Analysis, By OTT Service (Online Services, and Managed Services), By Type (OTT Communication services, OTT Media services, and OTT Applications services), By Platform (Smartphones, Smart TVs, Laptops Desktops & Tablets, and Others), and Regional Forecast, 2021-2028,” the market stood at USD 38.77 billion in 2020. It is set to exhibit a CAGR of 17.7% in the forecast period during 2021-2028.
Telstra Chooses Vimond to Support its Telstra TV Box Office Video On-demand Service
In February 2021, Telstra selected Vimond, the largest commercial television broadcaster in Norway, to support the former’s transactional video on-demand service named Telstra TV Box Office. This would enable the company to update metadata and organize assets easily for its TV and Movie content. Customers can get access to this content by using a digital purchase or rental model. Telstra’s editing team will be given specific tools by the company to develop enhanced experiences to connect customers to the available content. Such initiatives by major players are set to propel the demand for these services in the upcoming years.
Increasing Creation of Original Content by Various Companies to Accelerate Growth
The increasing reservation of original content for own platforms by rights holder providers, such as HBO, Disney+, and similar others are set to drive the over the top services market growth in the near future. Viacom18, for instance, developed Voot Select, a subscription-based video-on-demand service in March 2020 in India. Similarly, in April 2021, Fun Asia Network unveiled its latest over the top services platform called Big Fan TV. It provides South Asia’s largest content libraries in various languages. However, the Zemoga Survey declared that 64% of loyal subscribers in the U.S. and 55% in the U.K. were bound to only one platform because of the high-quality content. But, 38% of Americans often cancelled their subscriptions because of the lack of original content and high prices. It may hamper growth.
Key Companies Aim to Collaborate with Streaming Partners to Intensify Competition
The market houses for many big, small, and medium-sized companies. Most of them are joining hands with streaming partners, content providers, and telecom providers to broaden their presence worldwide. They are also investing huge sums in the development of streaming platforms and services. In February 2020, India’s HotStar services partnered up with The Walt Disney Company to launch Disney+Hotstar. Both companies are striving to compete with Amazon Prime and Netflix.
A Noteworthy Industry Development-
March 2020: AT&T introduced AT&T TV, its latest over the top service containing 500 hours of cloud DVR storage, on-demand library, and a bundle of live channels. It would enable the company to provide customers with a blend of features and feel of an OTT platform with the resemblance of the traditional TV subscription.
Further Report Findings-
North America procured USD 15.93 billion in terms of revenue in 2020. It is anticipated to remain at the forefront in the upcoming years because of the increasing investments in the content creation sector by key companies. The Telecom Advisory Services LLC, for instance, declared that Netflix, Inc. and Amazon.com, Inc. are planning to invest in film and TV programming.
In Asia Pacific, the rapidly cannibalized pay TV segment in China would contribute to the market growth. India is anticipated to grow steadily owing to the expansion of the various over the top platforms.
Based on type, the market is segregated into application services, media services, and communication services. Out of these, the communication services segment earned 45.2% and 38.2% in terms of the over the top services market share globally and in the U.S., respectively. Fortune Business Insights