The global video streaming market is expected to grow at a CAGR of around 12.2% from 2020 to 2027 and reach the market value of over US$ 843.1 Bn by 2027.
North America controls the majority of the global video streaming market. One of the factors driving regional growth is the high integration of cloud-based streaming services. And apart from that, the availability of Video-on-Demand (VoD) has been a godsend in terms of ensuring entertainment and engagement during this pandemic. Despite the fact that online streaming is common and well-established in the United States, there is an 18% increase in television consumption, with live-television viewership increasing by up to 14%. With lockdown extensions, a recent Nielsen report predicts an increase in streaming to more than 50% globally, according to ORF statistics.
Asia Pacific, on the other hand, will have the fastest growing CAGR in the coming years. This is due to the growing popularity of mobile phones and tablets, rapid technological advancements, and the popularity of online streaming. Many media and entertainment channels have launched their own platforms or are attempting to collaborate with other platforms to stream their content in response to rising demand. The OTT industry in India is expected to grow rapidly over the next five years. Between March and July 2020, the number of paid subscribers in India increased by 30%, from 22.2 million to 29.0 million. Another study found that 90% of consumers prefer watching video content in regional languages, with English content accounting for only 7% of total time spent on OTT platforms in India. According to the Indian Brand Equity Foundation, the top five metro cities accounted for 46 percent of total OTT video platform users in July 2020, while Tier I cities accounted for another 35%.
COVID-19 impact on global video streaming market
Everyone’s personal lives have come to a halt as a result of the lockdown. As a result, during a pandemic like COVID-19, which has isolated us all, indulgence in engagement through entertainment on televisions and smart phones has increased. OTT and VoD are on their way to becoming the primary sources of entertainment by offering affordable content, appealing offers, free trials, and accommodating theatrical releases. Along with VoD, activities such as news consumption across languages have increased by 298% since the lockdown, and TV viewing has increased by 8% every week, amounting to a 70 billion minute increase. Smartphone usage has increased by 1.4 hours per day for people aged 35 to 44, the largest increase ever recorded in this age group.
The global video streaming market is segmented based on streaming type, solution, platform, revenue, and end-user. Based on streaming type, the market is bifurcated into live video streaming and non-linear video streaming. By solution, the market is segregated as internet protocol TV, over-the-top (OTT), and pay-tv. By platform, the market is segmented as gaming consoles, laptops & desktops, smart phones & tablets, and smart TV. By revenue, the market is segmented as advertising, rental, and subscription. Furthermore, end-user is classified into enterprise and consumer.
In the past, the live streaming segment accounted for the greatest revenue share, and this trend is expected to continue throughout the forecast period. Since a growing number of people are immersed in this new type of social media, live video streaming has thrived. Diverse live streaming platforms also provide users with a free and open environment in which to engage in this type of interaction. Higher-level interactions between the streamer and audience members are common in this type of live. The viewers’ admiration for the streamers will encourage communication and consumption. Such factors contribute to the expansion of the global video streaming market.
According to the solution, the OTT-based segment will account for the largest revenue share of the global video streaming market. OTT apps, or those that stream content without a cable box, combine traditional pay-reach TV’s and power with the scale and flexibility of the internet to create an unstoppable force for content creators, distributors, and brands everywhere. Furthermore, OTT video trails only virtual reality (VR) in compound annual growth, with a steady 14% projected growth through 2020. According to MagnetGlobal statistics, OTT app usage will grow to a US$120 Bn industry by 2022, and a US$200 Bn industry by 2024, eventually displacing pay-TV within the next few years.
In the past, the subscription model accounted for the largest share of revenue, and this trend is expected to continue in the coming years. This is due to an increase in the number of video streaming subscriptions worldwide. In addition, the subscription model allows for the streaming of online videos for a fee or a subscription. Netflix, for example, provides a variety of monthly subscription plans or program.
The prominent players of video streaming involve Akamai Technologies, Inc., Amazon Web Services, Apple Inc., Cisco Systems, Inc., Kaltura, Netflix, Inc., Wowza Media Systems, LLC., International Business Machine Corporation (IBM Cloud Video), and among others.
Some of the key observations regarding video streaming include:
In February 2020, Netflix Inc. announced a partnership with Samsung Group. The collaboration enhances Netflix to become Samsung’s mobile entertainment partner. Additionally, Netflix Inc. will be producing exclusive content for the users of Galaxy smart phones. Acumen Research and Consulting