The OTT Content Market is estimated to be valued at US$ 132.68 Bn or Billion in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Over-the-top (OTT) content refers to the delivery of film and television content via the internet without requiring users to subscribe to traditional cable or satellite pay TV packages. It includes video, audio, games and other media. With advancement of technologies and devices, OTT content has gained huge popularity among consumers. Applications and websites like Netflix, Prime Video, YouTube etc allows users to watch movies and TV shows of their choice at their convenience without any restrictions.
Growth in smartphone and broadband penetration: Over the past few years, there has been significant rise in adoption of smartphones and availability of high speed broadband network across the globe. For instance, according to GSMA, the number of unique mobile subscribers worldwide reached 5.31 billion at the end of 2021. This growing penetration of smartphones and broadband has fueled the consumption of OTT video content streaming on mobile devices.
Changing viewers habits: Younger generation viewers are more comfortable watching video content on mobile and digital platforms rather than traditional TVs. They prefer on-demand services where they can watch content of their own choice as per their convenience rather than restricted scheduled viewing. This changing viewing behavior of consumers especially youth population is driving significant growth of OTT video streaming market.
The rising growth of connected devices such as smart TVs, gaming consoles, and digital media players is facilitating OTT video delivery across channels. Applications of OTT platforms are available for these devices, enabling access to wide range of video content. This is positively impacting the OTT Content Market growth.
The OTT content market can be broadly segmented into video streaming, audio/VoD, communication, and games and others. Among these, the video streaming segment dominates the OTT content market with around 50% share in 2023. The segment is also expected to maintain its dominance during the forecast period. High consumer demand for video streaming services via mobile apps and devices is the key factor boosting the growth of this segment.
Political: Governments across various countries are coming up with favorable policies to promote OTT content services and startups. This is positively impacting market growth.
Economic: High disposable incomes and improved living standards have boosted adoption of digital services. This supports high spending on OTT subscriptions and transactions.
Social: Changing lifestyles, digitalization, and increasing social media influence have paved way for rising OTT consumption trends among users.
Technological: Advances in connectivity, device capabilities, and digital experiences offered by various platforms are expanding the scope of OTT content delivery and customization.
The global OTT Content Market Share is expected to witness high growth, exhibiting CAGR of 14.% over the forecast period, due to increasing digitalization and smartphone adoption globally. The market size is projected to reach US$ 497.32 Bn by 2030 from US$ 132.68 Bn in 2023.
Asia Pacific is expected to dominate the OTT content market during the forecast period. This can be attributed to high consumer demand and rapid digital adoption in major economies like China and India. China accounts for over 30% share in the regional market backed by strong internet infrastructure and growing internet userbase.
Key players operating in the OTT content market are Akamai Technologies, Apple Inc., Google Inc., LeEco, Netflix, Microsoft Corporation, Amazon, Inc., Facebook, Inc., IBM Corporation, and Limelight Networks. Major players are focusing on expanding their market presence through content partnerships and service innovations to cater various on-demand viewing needs.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it