June 18, 2024
OTT Content Market

OTT Content Market is in Trends by Greater Personalization

The OTT content market encompasses the direct-to-consumer digital delivery of audio, video, and other media over the internet on various devices without the involvement of multiple system operators in the control or distribution of content. OTT content services enable viewers to watch a wide variety of entertainment shows, movies, news, sports, kids shows and other content on their devices at their convenience. With the proliferation of smart devices and high-speed internet connectivity, a massive shift towards OTT content consumption driven by mobility and personalization is being witnessed globally.

The Global OTT content market is estimated to be valued at US$ 152.85 Mn in 2024 and is expected to exhibit a CAGR of 7.3% over the forecast period from 2024 to 2030.

Key Takeaways

Key players operating in the OTT content market are Netflix, Amazon Prime Video, Disney+, Hulu, Youtube and Apple TV+. Netflix has emerged as the largest OTT platform with over 200 million paid subscribers worldwide on the back of its diverse content library and continuous expansion into multiple regional languages and markets. Growing demand for localized, customized and personalized content options from viewers across demographics is a key factor driving the rapid growth of the OTT content industry. Major players are actively investing in developing personalized recommendation systems, targeted advertising and localization of content to gain stronger footholds in international markets. The widespread adoption of high-speed internet and smart devices along with the increasing shift towards streaming and on-the-go viewing experiences is accelerating the global expansion of the OTT content market across regions.

Market key trends

One of the key trends witnessed in the OTT Content Market is the growing focus on technology enabled content personalization. Major players are investing heavily in big data analytics, AI and machine learning solutions to deeply understand individual viewers preferences, interests, viewing patterns and behaviors. This data driven personalization allows platforms to provide each user a unique content experience by recommending the most relevant movies, shows, genres and originals based on their unique profile. Personalized home screens, personalized playlists and targeted advertisements are improving user stickiness and driving longer engagement on OTT platforms. This ongoing shift towards greater personalization through sophisticated data science is expected to significantly boost revenues for OTT players in the coming years.

Porter’s Analysis

Threat of new entrants: The OTT content market has average threat of new entrants as significant initial infrastructure development is required however popularity of on-demand streaming is attracting new players.

Bargaining power of buyers: The bargaining power of buyers is high in OTT content market as buyers have multiple alternatives and switching cost is low.

Bargaining power of suppliers: The bargaining power of content suppliers is medium in OTT content market as big production houses and studios are key suppliers having pricing power.

Threat of new substitutes: The threat of substitutes is medium as many new tech and services are emerging as substitutes like gaming, AR/VR etc blurring the boundaries.

Competitive rivalry: The competitive rivalry is high in market as top players are investing heavily in original content and acquiring rights.

Geographical Regions

North America region accounted for the largest share in OTT content market in terms of value in 2024 due to high adoption of streaming services and presence of key players in the region.

Asia Pacific is expected to witness fastest growth during the forecast period owing to rising internet and smartphone penetration, increasing disposable income, and growing media and entertainment industry in countries like China and India.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it