Over The Top (OTT) Market Analysis North America,Europe,APAC,South America,Middle East and Africa - US,Canada,China,UK,Germany - Size and Forecast 2023-2027

Over the top (OTT) Market Forecast 2023-2027

The Global Over The Top (OTT) Market size is estimated to grow by USD 439.12 billion accelerating at a compound annual growth rate (CAGR) of 24.85% between 2022 and 2027. The market is experiencing significant growth driven by several key factors. With the increasing preference for cloud streaming services, consumers are shifting towards convenient and accessible content consumption. Additionally, the renewal of shows across various online streaming channels enhances content availability and attracts a broader audience base. Moreover, the rising adoption of target advertisement-based streaming apps ensures personalized content delivery, further fueling the expansion of the market. This market research and growth report also includes an in-depth OTT industry overview of drivers, trends, and challenges. 

What will be the Size of the Over the Top (OTT) Market During the Forecast Period?

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With the rise of customer experience as a priority, consumers are increasingly turning to OTT platforms for their home entertainment needs, moving away from traditional TV services. The abundance of online content, coupled with streaming licenses, allows users to access a wide range of local and international content. Moreover, the availability of OTT services across various devices ensures convenience and flexibility in content consumption, while personalized data enables targeted advertising and enhances user engagement.

Market Dynamics and Customer Landscape

The market is witnessing robust growth driven by the increasing demand for on-demand access to media content via the Internet. These platforms offer a wide range of content, including streaming license, local content, and podcasts, challenging traditional TV models. With a focus on customer experience, OTT providers offer personalized data and wider device availability, enhancing home entertainment. Moreover, OTT services provide advertisers with targeted marketing opportunities, leveraging social media platforms. Satellite and cable TV providers are also entering the OTT space, offering provider-based streaming options. This shift towards OTT reflects consumers' preferences for flexibility and diverse content selections. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of upcoming trends and challenges will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Drivers

Growing preference for cloud streaming services is a major market driver. Advancements in wired and wireless technologies, such as 3G, 4G, and 5G, are driving global adoption of cloud streaming services. These services prevent illegal downloading and sharing of video and audio files. companies use push strategies, like the freemium model, to convert free users to premium services, ensuring sustainability. Consumers are shifting to paid premium services for features like ad-free listening, high-quality audio, and the ability to download and skip tracks.

Cloud-based streaming is replacing traditional music systems, offering storage, streaming, and sharing across devices. Companies like Amazon and Google rely on the cloud to meet the demand for music, movies, and videos. Cloud streaming generates higher revenues for content companies and provides social media integration for personalized preferences and sharing. With growing internet penetration and improved services, consumers will increasingly adopt cloud streaming.

Significant Market Trends

The growing number of partnerships and acquisitions is an ongoing market trend. The market is growing with the increasing demand for audio and video OTT content. To capitalize on the growing demand for OTT content, companies are forming strategic partnerships to gain a competitive edge over their competitors, which will help them increase their customer base. Some of the significant partnerships and acquisitions are mentioned below: 

In September 2021, Amazon Prime Video launched its channels vertical in India by tying up with eight other subscription-based OTT video streaming players. Prime Video Channels will act as an intermediary for movies from Lionsgate Play, Eros Now, and MUBI, Bengali OTT player Hoichoi, Malayalam's manoramaMAX, documentaries from DocuBay, short films from ShortsTV and wildlife, adventure, science, and food and lifestyle content from discovery+.  In September 2021, Indian OTT space, Zee Entertainment Enterprises Ltd (ZEEL), and Sony Pictures Networks India (SPNI) entered into a merger to grow the profit and market share across South Asia. These types of partnerships and acquisitions will increase access to new digital audio and video content, which will drive the growth of the market during the forecast period. All these factors are boosting the growth of the market.

Major Market Challenges

Illegal downloading and piracy are major restraints hindering the market growth. Piracy poses a major challenge in the global market, impacting subscriptions worldwide. While some countries in Europe have piracy laws, many others lack strict regulations. Copyright piracy is widespread in countries like Portugal, the Netherlands, Spain, Latvia, and Bulgaria. Switzerland's laws protect torrent users but prohibit uploading files. The shift to digital music and the availability of content online has made piracy harder to combat. The lack of digital piracy laws in many countries and the use of VPNs contribute to the problem. Canada, Brazil, and India face significant piracy issues, affecting revenue for broadcasters and original streaming services. Despite copyright laws, piracy continues due to circumvention techniques.

Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Market Segmentation

The geography segment of the market highlights the widespread adoption of Over-the-Top services across various regions worldwide. With the proliferation of high-speed internet and the increasing demand for on-demand access to media content, traditional satellite television is facing stiff competition from OTT platforms. Consumers are gravitating towards OTT services for their flexibility and convenience, bypassing traditional broadcasters and opting for online content streaming. This shift in consumer behavior has prompted OTT providers to offer competitive subscription fees and diverse content libraries to attract viewers. Additionally, the revenue model of OTT platforms often includes advertisements to supplement subscription revenue. As a result, the market for streaming licenses continues to expand, reflecting the global demand for OTT services and the changing landscape of media consumption.

By Geography

The video segment is expected to experience significant market share growth in the forecast period. The video on demand market will witness substantial growth due to the increasing availability of video content. OTT services in the video category can be divided into subscription video-on-demand (SVOD), advertising-based video-on-demand (AVOD), and transactional video-on-demand (TVOD). SVOD allows users to access video content for a limited period by paying a subscription fee. AVOD involves generating revenue through advertisements while users stream videos, with the content being free to watch. Platforms like YouTube operate on the AVOD model.

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The video segment witnessed substantial growth, with a value of USD 60.25 billion in 2017, continuing to rise until 2021. The increased adoption of smart devices like smartphones and tablets has fueled the demand for video content. Furthermore, advancements in mobile networks, particularly investments in 4G and preparations for the 5G network, have further amplified the need for video content. The upcoming 5G network promises enhanced performance, including faster data rates, lower latency, and increased traffic capacity, encouraging seamless downloading and streaming of video content on mobile devices. Consequently, video-on-demand subscriptions have also surged, contributing to the growth of the global market.

Key Regions

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APAC is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The presence of major market players like Facebook, Netflix, Amazon, Microsoft, Google, YouTube, Apple, Home Box Office, Roku, IndieFlix, Vudu, and Hulu in North America is driving the growth of the market in the region. These companies generate significant revenue from their North American business segments, which contribute the most to their overall operations. Many streaming service providers in the region are partnering with smart speaker manufacturers to integrate audio streaming and video streaming services into their systems. Additionally, Amazon.com, Apple, and Google are launching smart speakers with integrated streaming platforms, further fueling the growth of the market.

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Netflix Inc.- The company provides entertainment services like TV series, films, and games across a wide range of genres and languages. As of December 2022, it had around 231 million paid memberships in over 190 countries.

The report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• 8x8 Inc.
• Alphabet Inc.
• Amazon.com Inc.
• Apple Inc.
• Cinedigm Digital Cinema Corp.
• Comcast Corp.
• Deezer SA
• Meta Platforms Inc.
• FlixFling LLC
• iflix Ltd.
• Indieflix Inc.
• Microsoft Corp.
• Sirius XM Holdings Inc.
• Sony Group Corp.
• Spotify Technology SA
• Telstra Corp. Ltd.
• Tencent Holdings Ltd.
• The Walt Disney Co.
• Paramount Global

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

The Over-the-Top market is experiencing rapid growth fueled by the increasing demand for media content delivered through alternative channels to cable and satellite television. OTT platforms provide on-demand access to a wide range of content, offering consumers greater flexibility than traditional TV. With competitive subscription fees and enhanced customer experience, OTT services are reshaping the landscape of home entertainment. These platforms offer diverse online content, including local content and a podcast, with a streaming license allowing for wider device availability on OTT devices. Additionally, OTT providers leverage social media marketing to deliver personalized data and attract users, emphasizing narrow type selections and flexible packaging options.

The market continues to flourish, offering consumers an array of options for accessing TV shows, live events, and original programming through online platforms. With a shift away from traditional viewing methods, consumers are drawn to the diverse film and television content available on OTT services, facilitated by high-speed internet connections. Unlike traditional cable or satellite provider-based platforms, OTT adoption provides users with narrow genre choices and packaging flexibility for on-demand viewing. Content creators are exploring new business models to monetize their offerings through subscription fees, while advancements in technology, including higher internet speeds and smart TVs, enhance the playback experience and reduce buffering times for high-definition (HD) and ultra-high-definition (UHD) content across broadband and 4G/5G mobile networks.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.

• Content Type Outlook 
  • Video 
  • Text and images
  • VoIP
  • Music streaming

• Device Outlook 
  • Smartphones and Tablet
  • Laptop and Desktop
  • Smart TV

• Region Outlook 
  • APAC
    • China
    • India
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • South America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Scope
Report Coverage	Details
Page number	174
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 24.85%
Market growth 2023-2027	USD 439.12 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	21.42
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	APAC at 34%
Key countries	US, Canada, China, UK, and Germany
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	8x8 Inc., Alphabet Inc., Amazon.com Inc., Apple Inc., Cinedigm Digital Cinema Corp., Comcast Corp., Deezer SA, Meta Platforms Inc., FlixFling LLC, iflix Ltd., Indieflix Inc., Microsoft Corp., Netflix Inc., Sirius XM Holdings Inc., Sony Group Corp., Spotify Technology SA, Telstra Corp. Ltd., Tencent Holdings Ltd., The Walt Disney Co., and Paramount Global
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the market size and its contribution of the market in focus to the parent market
• Detailed customer landscape covering price sensitivity, adoption of the lifecycle, and key purchase criteria 
• Vendor landscape comparing criticality of inputs and factors of differentiation
• Exclusive Matrix on vendor position and classification
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of over the top (OTT) market companies

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