Global Over The Top (OTT) Market Research Report, 2028

Global Over The Top (OTT) Market Research Report, 2028

Actual Market Research 31-01-2023 117 Pages Figures : 38 Tables : 162 Region : Global Category : IT & Telecommunications Telecommunications & Networks

OTT refers to the delivery of TV content and films through the internet without any requirement to subscribe to conventional satellite and cable services, such as Time Warner Cable or Comcast. The potential of the over-the-top devices and services market is to grow and continue to grow as a result of service providers' widespread use of smartphones, smart TVs, and gaming consoles. The OTT services were previously used for the distribution of audio and video content over the internet. However, technological advances have contributed to the use of technology for video and game console applications. The adoption of OTT services, in conjunction with the adoption of cloud services and cloud technology, has enabled service portability among OTT service providers. These service providers enable users to upload data and access online content from any location and on any device. The new entrants for the adoption of OTT technology are Google LLC, Microsoft Corporation, and Apple Inc., among others. Some of the major factors determining the industry's growth are the significant growth of the media and entertainment industries and the growing demand for high-quality content streaming over smart devices. Compared to conventional cable and satellite services, OTT media services offer greater ease of access, interoperability, comfort, and functionality. Furthermore, the use of advanced service technology and the delivery of custom content have created a huge appeal for the industry, and profits are expected to accelerate over the next few years. According to the research report, "Global Over the Top (OTT) Market Research Report, 2028," published by Actual Market Research, the market is projected to reach a size of USD 490.13 billion by 2028, up from USD 210.13 billion in 2022. The overall market is projected to grow with a promising CAGR of 15.72% for 2023–28. The expansion of over-the-top (OTT) services is primarily being driven by an increase in broadband penetration. A growth in internet users and their access to over-the-top (OTT) material like video, music streaming, and VoIP (Voice over Internet Protocol) was brought on by high-speed broadband internet access. This will increase the demand for over-the-top (OTT) content and lead the global OTT market to grow. The availability of OTT content in different local languages is fueling market growth. OTT services are becoming increasingly popular because of the availability of content dubbed in many local languages, allowing consumers to understand the content more readily and helping them engage with the story. Furthermore, OTT streaming media firms are attempting to provide subtitles in additional languages so that any consumer anywhere in the world can access and enjoy the content. Additionally, Netflix, Inc. acquired Animal Logic Group of Companies, an animation studio, in 2022; with this acquisition, the company looks forward to strengthening its market position in the animation business. Based on the report, the market is segmented into five major regions, including North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. In the year 2022, North America held the largest market share with over 40% in the over-the-top (OTT) market and is also expected to retain its dominance throughout the forecast period. Significant funds and investment in the content creation sector are constantly driving market growth. For instance, according to Telecom Advisory Services LLC, Amazon.com, Inc., and Netflix, Inc. were anticipated to take positions in TV shows and film programming in 2019. On the basis of countries, the United States will hold the lion's share of the global market in 2022. New platform suppliers in the United States, such as Disney+, Peacock, Quibi, HBO Max, Apple TV, and others, are driving market growth in this region. However, Asia Pacific is expected to achieve exponential growth throughout the forecast period. The market's growth will most likely be driven by the mature utility and broadcaster industries. Asian countries such as China, Japan, and India are prepared to witness the phenomenal rise of platforms, which is expected to provide enormous potential for the region's market to expand. There are three major types of over-the-top (OTT) markets, such as AVOD (advertising-based video on demand), SVOD (subscription video on demand), TVOD (transactional video on demand), and others. Subscription video-on-demand (SVOD) stands for subscription video-on-demand: SVOD, like standard pay-TV packages, allows customers to access an entire catalogue of programming for a fixed monthly fee. The main factor responsible for the surge in popularity of SVOD streaming platforms, like Netflix, Amazon Prime Video, Hulu, HBO, and Disney+, is that users get unlimited access to original and high-quality content on the go. Further, the price innovation, bundling, and availability of original premium content for users in the country have increased the adoption of subscription video-on-demand (SVOD) services offered by the OTT platforms. Secondly, free and ad-supported services include Roku Channel, Crackle, and YouTube. Lastly, transactional services include Google Play, iTunes, Amazon Instant Video, and Vimeo that enable users to pay for individual pieces of content. This segment is anticipated to grow at a higher CAGR by 2028. The increased penetration of mobile phones and digital device networks, which fuels demand for OTT services, is the primary driver of the industry. There are more than 5 billion mobile phone users in the world today, which accounts for approximately 62.5% of the world population. By simply connecting their smart devices with the subscribed OTT services, viewers gain access to content anytime, anywhere, and on their device of choice. This is also helped by the fact that mobile network operators (MNOs), particularly in emerging countries in the APAC and MENA regions, have accelerated the rollout of mobile broadband and LTE. At the same time, MNO partnerships and bundling of packages have made it affordable for consumers to gain access to even more content on their mobile devices. Therefore, the mobile channel is quickly emerging as the most preferred video delivery platform as well as the predominant service distribution channel for accelerated growth. Internet penetration and the proliferation of smart devices, along with an increase in disposable income, have enabled users to avail themselves of OTT services at the click of their fingertips. The global OTT market is mainly driven by ease of viewing across different devices and platforms, a variety of content and technological advancements. The expansion of the OTT industry has been fuelled by the availability of a wide range of streaming content in addition to different languages and the simplicity of viewing through various devices and platforms such as smartphones, smart TVs, laptops, etc. These are the factors that are significantly influencing customers' choice to shift towards OTT media services from the traditional broadcast network. According to the report, the market is segmented into various device types, including smartphones and tablets, desktops and laptops, smart TVs and set-top boxes, and gaming consoles and streaming devices. Among them, the smart TV and set-top box segment is leading the market owing to increasing subscriptions across the globe. During the forecast period, the demand for OTT media services is expected to significantly grow with the rise in consumer spending power, as consumers are now preferring to purchase different subscriptions for streaming OTT services in order to avail of a wide range of web series, movies, live streaming, and other media content on various devices such as televisions, smartphones, etc. Moreover, according to the data obtained, more than 660 million households have smart TVs in their homes, significantly fuelling the demand for OTT media services in the country. Many consumers are upgrading from traditional televisions to smart TVs, which offer features such as internet connectivity, streaming capabilities, and access to a wide range of online content. As of my knowledge cut-off date in 2021, it is estimated that more than half of all television sets sold globally are smart TVs. Furthermore, streaming on 4K televisions is a key trend in the OTT (over-the-Top) streaming market. A 4K resolution is typically 3,840 x 2,160 pixels and is also known as UHD or Ultra-High Definition. This is the highest level of high-definition video quality available to film, television, and sports viewers these days. Nowadays, most of the latest TVs are 4K-compliant. Major streaming services such as Netflix, Disney+, and Amazon Prime Video have included premium 4K and 4K content in their services. FuboTV debuted its first live TV broadcast in 4K with HDR. The only sports that took advantage of this improved visual quality were World Cup matches, but later the company added some NCAA football matches in 4K. In November 2021, Fubo TV, a US-based television streaming company, acquired Molotov for an undisclosed amount. The acquisition would provide the company with an extended footprint in the European market. Molotov is a French television streaming company. Major players in the OTT streaming market are Facebook, Netflix, Amazon, Microsoft, Google, Apple, Hulu, Tencent, Rakuten, and YouTube. Based on the report, the market is segmented into four major service verticals, including media and entertainment, education and learning, gaming, and service utilities. Among them, media and entertainment are leading the market with more than 72% in 2022. However, the education and learning and gaming segments are projected to witness higher demands during the forecast period. Online gaming companies need to reach out to a large number of global customers, avoiding the presence of limitations across the entire gaming experience. These companies aim to deliver a fast and secure online gaming experience, offer a rich media experience, and track the records of users that use various gaming applications. The consistent engagement of end users in the gaming sector enables companies to make notable developments across the segment in terms of high-quality (HQ) delivery over handheld devices, such as smartphones and tablets. Based on content type, the market is categorised into video streaming, game streaming, audio streaming, and communication. The video streaming segment is expected to dominate with remarkable growth during the forecast period. The growing number of platforms offering live-streaming, such as concerts, sports, online gaming, and music streaming, among others, along with video-on-demand services, is likely to fuel the demand for this segment. The prominent presence of video service providers such as Netflix, Amazon, Apple, Disney+, and HBO Max, among others, is expected to boost market opportunities. For instance, by January 2020, key providers Netflix and Amazon Prime Video had registered more than 155 million and over 100 million subscribers globally, respectively. On the other hand, the communication services segment is expected to gain prominent growth during the forecast period. The advent of instant messaging services such as WhatsApp and iMessage has led to a drastic shift from conventional messaging services. Similarly, the growing digital economy and telecom providers' interest in the OTT industry are likely to drive the communication segment. Based on component type, the global market is segmented into solutions and services. Among these, the solution segment accounted for significant market size in 2022, and it is projected to continue its growth during the forecast years. The increasing importance of solution segments in digital content distribution, digital media, and broadcast management is driving market growth. Besides solutions, the market for services will grow at a notable rate of over 15% CAGR from 2023 to 2028. Based on user type, the global market is categorised into personal and commercial. In both of these, personal users will witness higher market growth, with over 65% market share by 2028. Increasing demand for OTT services to provide a personalised experience is driving market growth in the forecast years. However, commercial user types are expected to grow with higher market growth. The overall increase in the application of these OTT services popularly used by generation Z and millennials has risen as a result of their continuing practise of using laptops, smartphones, and tablets to improve over-the-top gadgets and facilities. The application of these solutions has changed as a result of regulatory agencies' and companies' mandated commitment to laws. Customers continue to use smartphones to access OTT services due to the higher cost of notebooks and tablets, which accelerates demand growth for over-the-top devices and services.The COVID-19 pandemic caused widespread harm around the world. People were forced to stay indoors and consume entertainment and other media through over-the-top (OTT) services; sporting events, theatres, and other public places were shut down. Furthermore, the innovative pricing strategy and customization of content selection are based on the comfort and flexibility of the consumer. As a result, existing and new OTT media service providers were able to seize the opportunity. Start-Up Scenarios • Economy As the proliferation of high bandwidth increases across the globe, start-up companies in the OTT content market, along with key players, are coming up with innovative strategies to make sporting, informational, entertaining, etc. content available for consumers across the globe by adopting advanced technologies and studying the achievements of key subscription streaming service providers: • Pluto TV is an ad-supported virtual MVPD platform. It allows users to stream TV and movies. provides live and on-demand VOD content under various categories, including music videos, news reports, action sports, video game commentary, and more. supports various devices such as Apple TV, Android TV, Amazon Fire TV, Chromecast, Roku, and PlayStation consoles. The mobile app is available for Android and iOS devices. generates revenue through video advertisements between programming. • FuboTV is a provider of a subscription-based video platform for football fans. It offers a cloud-based video platform that provides a TV streaming platform for soccer, live cable sports channels, live soccer games, documentaries, and club channels. The platform can be accessed through internet-connected TVs, smartphones, game consoles, and set-top boxes. It also integrates fan view into its multi-view feature for OS TV. It generates revenue through subscriptions. • Loco is an online platform for live video game streaming.The platform allows users to play and live stream games like Free Fire, CODM, PUBG, Valorant, GTA V, and more. The app is available for Android users. It monetizes through in-app advertising and purchases. • Cheddar is an online video news platform focused on business news. It covers news on innovative product and service offerings from media, technology, and consumer companies. It has partnered with VHX to distribute content. It generates revenue through product placements in fashion, food, and technology. • Iflix is a Malaysian subscription-based video-on-demand platform. The company claims to focus on first-run local movies and original programming and offers content spanning multiple categories like movies, TV shows, drama, and kids entertainment, among others. • M2AMedia is a UK-based start-up that simplifies live video streaming. The start-up’s product, M2A Connect, transitions live video workflows to public clouds. It enables the aggregation and distribution of live video streams on AWS. Besides, the startup's other product, M2A Live, allows content providers to deliver low-latency, highly reliable live streams. These solutions enable broadcasters and OTT platforms to streamline their live streaming services across websites. • Conductor Technologies is a US-based start-up that optimises content rendering, The startup's platform uses cloud computing to replace the traditional render farm for media production. It integrates with visual effects (VEX), virtual reality (VR), augmented reality (AR), and animation pipelines to offload rendering workloads to the cloud. This facilitates studios and content creators to leverage time-based rendering costs and provide content access to unlimited customers. • TV2Z is a Dutch start-up that provides a content management platform. It leverages cloud computing to build a video management directory. The platform allows users to upload video data from local storage to the right channels. It also allows them to control the content based on regions, like geo-blocking, and allows customers to add localised metadata. This enables digital TV providers and OTT platforms to streamline video inventory management. Recent Developments: • March 2022: HISPASAT, the Spanish operator and satellite services and solutions provider of Red Eléctrica Group, has concluded an agreement with NAGRA, the world's foremost independent provider of streaming, content protection, and monetization solutions for digital television, to produce a wholesale OTT (over-the-Top) television solution in Latin America. • In November 2022, AMC Networks and Roku announced an expanded partnership to feature AMC Networks’ high-quality content and targeted streaming services across The Roku Channel's broad and growing ecosystem. The agreement included the addition of 11 free ad-supported streaming (FAST) channels created and programmed by AMC Networks to The Roku Channel, including an exclusive channel, AMC Showcase, which would feature many of AMC's signature dramas, including Mad Men. • September 2022 Medianova and streaming platform Jet-Stream announced a partnership to provide Medianova’s CDN service within Jet-Stream’s service. Through the partnership, Jet-Stream Airflow Multi CDN is integrated into Jet-Stream Cloud services. • May 2022: Sony Sports Network has announced that Roland-Garros 2022, the second grand slam event of the year, will be aired in four regional languages for live broadcast in India. The tournament can be streamed on Sony Sports Network’s on-demand OTT platform, SonyLIV. • In June 2022, Amazon partnered with American entertainment company AMC Networks to offer its content on Amazon Prime Video channels in India. As part of the partnership, Amazon Prime Video would offer the ad-free subscription service AMC+ and AMC's streaming service Acorn TV on Prime Video channels in India on a subscription basis. • In May 2022, Mattel, Inc. announced a partnership with HBO Max on a pair of new live-action American Girl specials based on the hit doll and book line. The first special, American Girl Corinne Tan (wt), focused on the brand’s 2022 Girl of the Year of the same name. Produced by MarVista Entertainment, a Fox Entertainment Company, "American Girl: Corinne Tan" would premiere in December on Cartoon Network and the following day on HBO Max. A second American Girl special would follow in 2023. • On February 19, 2021, Technopark, Thiruvananthapuram-based Toonz Media Group, an entertainment company specialising in animation content production, launched an over-the-top (OTT) platform for children and family entertainment called MyToonz. Toonz has tied up with several app stores, telecom firms, OTTs, and connected TV companies around the world to make MyToonz available for consumers across platforms. • December 2021: Yoplex announced the launch of a new OTT platform that would feature fresh releases. The platform aims to provide unique and high-quality content to its audience in order to ramp up the entertainment quotient. The platform has a user-friendly app that is set to run on a subscription model with minimum charges applicable. • December 2021: Netflix slashed its SVOD subscription price by 60% in India. The mobile-only plan was reduced to USD 1.96 per month from USD 2.62; 2 dollars decreased the standard plan to USD 6.58 per month; and the premium plan was reduced to USD 8.55 from USD 10.59 per month. • September 2021: In Kenya, Netflix is releasing a new free Android mobile plan that will allow users to watch a limited selection of its repertoire, including full seasons of certain shows. The Netflix mobile plan for Android enables users to join without submitting any financial information. • In October 2021, Netflix made its biggest acquisition by buying Roald Dahl Story Co. The acquisition would build on the partnership to create a slate of animated TV series. The projects under these would promote more ambitious ventures aimed at creating a unique universe across animated and live-action films and TV, publishing, games, immersive experiences, live theatre, consumer products, and more. Partnerships, collaborations, and agreements: • Jan. 2020: Roku, in partnership with Vevo, will offer curated music video channels. These new channels include Vevo Classic Rock, Vevo Country, Vevo EDM, and Vevo Pop. • Dec. 2019: Google Nest partnered with Booking.com, a leader in online travel, making it easier for everyone to experience the world. Under the partnership, the companies aim to develop a connected and seamless trip experience for hosts and travelers. • Nov. 2019: Amazon partnered with RedBus, an online bus ticket booking platform, and launched a private bus ticket booking service. Amazon customers have access to RedBus features such as live tracking of buses, bus service ratings by passengers, bus numbers, and contact information for staff before departure. • Nov. 2019: Amazon entered into a partnership with BookMyShow, an online ticket booking platform. Amazon customers can now buy movie tickets from its own app thanks to this collaboration.This collaboration aimed to help an e-commerce company become a one-stop shop for all online consumer transactions. Acquisitions and mergers: • December 2019: Facebook acquired PlayGiga, a Spanish video gaming company. The acquisition helped Facebook build its online gaming business with new missions. • Dec. 2019: Google announced the acquisition of Typhoon, an independent game developer. After the acquisition, Typhoon began operating under the Stadia Games and Entertainment business of Google. The acquisition emerged as a new step for Google in its expansion in the gaming industry. • June 2019: Microsoft announced the acquisition of Double Fine, a video game developer company. The acquisition bolstered the position of the former company in the gaming industry by bringing its breakthrough technology to Microsoft's technology. • Apple completed the acquisition of Shazam, a popular music discovery app, in September 2018.After the acquisition, Apple made this app ad-free so that users could enjoy the best of Shazam without interruption. • May-2018: Texture, the digital magazine subscription service by Next Issue Media LLC, has been acquired by Apple. This gave users unlimited access to their favourite titles for a one-month subscription fee. Product Launches and Product Expansions: • Nov. 2019: Amazon introduced an ad-supported free version of its music streaming service, Amazon Music. It would be part of its prime bundle. • Jun. 2019: Netflix released new video games based on its shows as part of its efforts to turn its streaming platform into a multimedia empire. Its new games were Stranger Things 3, a title based on a teen series; The Dark Crystal: Age of Resistance, a prequel series to the 1980s Jim Henson film; etc. • Mar. 2019: Google unveiled Stadia, a new online gaming platform. Through this launch, the company aimed to enter the internet-based services segment. It is a cloud-based platform that the customers can use by simply clicking on the "Play Now" button. • Mar-2019: Apple announced the launch of Apple Arcade, the world's first game subscription service for desktop, mobile, and the living room. Arcade features brand new, original games from Major Studios, acclaimed indie developers like Ken Wong, and legendary creators like Hironobu Sakaguchi and Will Wright. Covid-19 Impacts: Because of the spread of COVID-19, governments in almost every country have imposed lockdown, resulting in a massive increase in the number of OTT platforms. According to the CXOs, viewership on the OTT platforms is expected to grow further during the over-the-top market forecast period, as television channels are running out of content. Because of the imposed lockdown, TV channels are airing old content because they have been unable to shoot. This has drifted viewers towards OTT to watch fresh content, which is expected to notably drive the growth of the market. Moreover, as the demand for new OTT entertainment content has grown tremendously, a number of OTT service providers are offering some of their content for free and launching new content on their platforms. To meet the ever-increasing demand of consumers, platforms such as Zee5 and Amazon Prime Video have made a few of their shows free to watch as part of their #BeCalmBeEntertained initiative. In addition, the Indian OTT service provider, Zee5, has witnessed almost an 80% increase in subscriptions and over 50% growth in time spent recently. Furthermore, Amazon Prime Video recently made some of the kids’ content on its platform free in India. 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, Alphabet Inc (Google, Youtube), Microsoft Corporation, Telstra Corporation Ltd, Roku, Inc, Meta Platforms, Inc., Indieflix Gropu Inc., Fandango Media, llc, iQIYI, Inc., home box office, Tencent 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 Regions & Countries covered in the report: • North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Spain, Italy, Russia) • Asia-Pacific (China, Japan, India, Australia, South Korea) • South America (Brazil, Argentina, Colombia) • Middle-East & Africa (UAE, Saudi Arabia, South Africa) By Type: • AVOD (Advertising-based Video On Demand) • SVOD (Subscription Video on Demand) • TVOD (Transactional Video on Demand) • Others 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 • Communication By Service Verticals: • Media and Entertainment • Education and Learning • Gaming • Service Utilities By User Type: • Personal • Commercial By Component Type: • Solution • Services The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Over The Top (OTT) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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