OTT CONTENT MARKET ANALYSIS

Market Size and Trends

Global OTT content market is estimated to be valued at US$ 253.14 Bn in 2024 and is expected to reach US$ 683.73 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 15.2% from 2024 to 2031.

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Rising consumption of video and audio streaming across major regions globally has been the major trend in the market. Traditional pay TV services are declining as consumers are preferring on-demand online streaming of content. Major factors driving the market growth includes rising internet penetration powered by smartphones, lower data costs, and OTT platforms providing highly personalized content consumption experiences through technology improvements. Entry of various studios, broadcasters and tech giants in this space with their direct-to-consumer offerings has further intensified competition and enriched content libraries. This consumer shift towards digital content consumption on demand can drive the market growth.

Growing Access to High-Speed Internet

Growing penetration of high-speed internet across both developed and developing nations has provided immense possibilities for content consumption beyond traditional mediums. With smartphones serving as personal entertainment centers, viewers are no longer limited by time or location, allowing them to access content whenever and wherever they choose. People are able to access audio and video content onthego through affordable data plans and public Wi-Fi hotspots. OTT players have successfully leveraged this digital transformation by delivering their content directly to devices through easy-to-use apps. Viewers now have hundreds of options at their fingertips to choose from a wide array of genres, according to their mood and interests.

Market Concentration and Competitive Landscape

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Evolving Viewer Preferences

With the emergence of OTT platforms, there has been shift in viewer preferences. The millennial generation is move towards on-demand, binge-worthy content that can be accessed and consumed according to their schedule. These people seek fresh, engaging stories told in shorter formats like web series that fit better into their busy lifestyles. OTT players understand this change and invests in producing original content tailored for different international markets. Audiences now want culturally resonant titles with diverse voices in their local languages. These also expect a seamless user experience across all devices to maintain viewer engagement, OTT content providers are leveraging personalization and interactive features. They offer subscribers tailored recommendations based on their viewing history and preferences, ensuring that users discover new content that aligns with their tastes. Additionally, platforms are incorporating social viewing tools, such as watch parties and real-time chat, to foster a sense of community and enhance the overall viewing experience.

Key Takeaways from Analyst:

Global OTT content market growth is driven by increasing internet and smartphone penetration. With more users now accessing content online and on-the-go, there has been huge demand for online video and audio streaming services. Improving digital payments infrastructure that makes transactions for OTT content can also drive the market growth.

Connectivity or network issues in developing countries can pose a challenge to consumption of OTT media. Affordability of high-speed internet plans can hamper its wider adoption in many emerging markets. Lingering regulatory uncertainties around data usage and local content rules in some regions could negatively impact foreign players.

The media landscape faces both fragmentation and consolidation challenges. Major players are differentiating themselves by securing exclusive content deals, but big tech companies are also investing in media companies and content, driving consolidation trends. India, with its rapidly growing internet and smartphone user base, is emerging as a significant opportunity, while China remains attractive due to innovative business models.

Market Challenges: Limited internet connectivity in rural areas

Limited internet connectivity in rural areas can pose a major challenge for global OTT content market growth. A large section of the population still resides in rural and remote locations across the world, which have poor access to high-speed broadband networks. This curtails their ability to seamlessly stream on-demand video and audio content through mobile apps and websites of OTT platforms.

The lack of adequate bandwidth in rural internet also affects the quality of experience for OTT services even if these are available. Video and audio content often buffer or stop during playback in low bandwidth conditions. This discourages users from frequent and long viewing sessions on OTT platforms. Content providers have fewer options to maximize monetization through advertising or subscriptions in rural markets. Unless the global rural-urban digital divide is bridged through focused infrastructure investments, the OTT industry may find it difficult to realize its full growth potential in the near future.

Market Opportunities: Growth of VR/AR based content

The adoption of virtual and augmented reality technologies has increased exponentially in recent years as both hardware and content have improved dramatically. As VR/AR headsets become more affordable and immersive content expands, more consumers are engaging with these interactive mediums. This rising popularity of VR/AR can offer growth opportunities for tailored content delivery through over-the-top (OTT) platforms. Content creators and OTT providers that diversify into specialized VR/AR content have a unique chance to attract new audiences and premium subscribers.

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In terms of Revenue Model, Subscription Based segment dominates the market due to convenience and vast content libraries

Among revenue model, subscription-based segment is estimated to contribute the highest market share of 72.9% in 2024, owing to the convenience it offers to viewers. With a monthly or annual subscription, users can access extensive libraries containing thousands of TV shows and movies from major studios. Viewers are no longer constrained by the content available on free, ad-supported services. They can now access a wider range of content, watching it whenever and wherever they choose, without the interruption of commercials.

This on-demand access has become especially appealing in the post-pandemic era as people spent more time at home. Subscriptions allow families to stay entertained for hours with content suitable for all ages. Viewers value the ability to binge-watch entire seasons of their favorite programs or discover new favorites without having to wait for weekly broadcasts. Some services even premiere new episodes the same day it is aired on TV.

Major streaming platforms like Netflix, Disney+, and HBO Max have invested billions into producing original exclusive shows and movies to attract subscribers. The combination of strong brand recognition and a diverse library of both classic and contemporary popular titles has made these streaming services an essential part of many households' entertainment options.

In terms of Streaming Platform, Smartphones and Tablets segment dominates the market due to their convenience as portable devices

Among streaming platform, smartphones and tablets segment is estimated to contribute the market share of 37.3% in 2024, owing to their ubiquitous nature and convenience as portable devices. Content can be accessed anywhere with a Wi-Fi or data connection by simply launching an app. The vast library sections, curated specifically for mobile users, make it easy to discover videos suitable for short breaks or extended viewing sessions.

Motion pictures, TV programs, news, sports and others are optimized for smaller screens to provide enjoyable experiences. Auto-play features continue playback of additional suggested titles with a single tap. Downloads allow downloading videos to phones or tablets to watch later without an internet connection.

As video consumption becomes more mobile-centric, platforms invest in improving resolutions, reduced data usage and other optimizations.

The widespread availability and convenience of smartphones and tablets can significantly enhance mobile OTT viewing. As mobile internet access expands, particularly in developing markets, on-the-go streaming on phones and multi-purpose consumer slates will continue to revolutionize how global audiences access subscription and advertising-supported content worldwide.

Regional Insights

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Asia Pacific has been the dominant region in the global OTT content market with estimated market share of 44.8% in 2024 due to high Internet and smartphone penetration, widespread adoption of streaming services, and presence of key players in the region.

Platforms such as Netflix, Hulu, Amazon Prime Video have built solid subscriber bases in the country by licensing popular television shows and movies as well as producing original content tailored for American audiences. Major studios have also recognized the revenue potential of direct-to-consumer release strategies for new films and are embracing the OTT business model.

While North America maintains its leadership position, Southeast Asia is emerging as the fastest growing regional OTT content market globally. Countries like India, Indonesia and Thailand are witnessing exponential growth due to increasing smartphone and internet adoption among consumers. OTT players are actively investing resources to target and develop content specifically for these audiences.

The growing middle-class population and affordable data plans have driven online streaming to become mainstream in Southeast Asia. Although the OTT content market is still developing compared to more mature markets, it has significant potential for growth if platforms can offer engaging catalogs tailored to regional preferences and formats like short-form videos, which are popular among younger audiences. Despite the ongoing challenge of piracy, strict government regulations and relatively low subscription prices compared to per capita income will be crucial for platforms to convert users into paying subscribers. Southeast Asia's diverse market offers lucrative opportunities for OTT players if they can effectively localize their operations and content offerings in the region.

Market Report Scope

Key Developments

• On March 7, 2024, Kerala launched CSpace, India's first government-backed OTT platform, designed to promote cultural and artistic content while ensuring transparency. The platform operates on a pay-per-view model, allowing users to access films, shorts, documentaries, and other content for as little as ₹75. Managed by the Kerala State Film Development Corporation (KSFDC), CSpace features award-winning films, short films, and documentaries that highlight artistic and cultural merit, providing a unique platform for these lesser-known but valuable pieces of content.
• In September 2021, Akamai Technologies, Inc., a leading provider of digital experience protection and delivery solutions, introduced Learn Akamai, a free, on-demand learning platform aimed at equipping customers with the skills to fully leverage Akamai solutions and optimize their digital experiences efficiently and effectively.
• In September 2020, Limelight Networks, Inc. announced that it had partnered with SimulTV to provide access to over 130 live online channels globally, enabling SimulTV to enhance the streaming experience for its users worldwide.
• In September 2019, Apple Inc. launched Apple TV+, a premium subscription service that provides users with exclusive access to original video content.

*Definition: The OTT content market provides on-demand streaming services that allow users to access movies, TV shows and other entertainment content directly through the internet without requiring cable or satellite TV subscriptions. Subscribers can access this content through smart TVs, streaming media players, game consoles, set-top boxes, smartphones, tablets and other internet-connected devices. The service allows users to choose from thousands of titles in the content library and stream videos on-demand directly to their devices anywhere, anytime at affordable subscription prices.

Market Segmentation

•  Revenue Model Insights (Revenue, USD Bn, 2019 - 2031)
  • Subscription Based
  • Advertising Based
  • Transaction Based
•  Streaming Platform Insights (Revenue, USD Bn, 2019 - 2031)
  • Desktop and Laptop
  • Gaming Consoles
  • OTT Streaming Devices
  • Smartphones and Tablets
  • Smart TVs
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • France
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • South Africa
    • Rest of Middle East & Africa        
• Key Players Insights
  • Amazon.com, Inc.
  • Apple Inc.
  • AT&T Inc.
  • BBC Studios
  • CANAL+ Group
  • Comcast Corporation
  • Eros International Plc
  • Hulu LLC
  • iQIYI, Inc.
  • MEGOGO
  • Netflix Japan Inc.
  • Netflix, Inc.
  • Rakuten Group, Inc.
  • Sony Pictures Entertainment Inc.
  • Star India Private Limited
  • Tencent Holdings Limited
  • The Walt Disney Company
  • Warner Bros. Discovery
  • Youku Tudou Inc.
  • YouTube LLC