Over-the-top (OTT) content refers to delivery of audio, video, and other media over the internet without involvement of a multiple-system operator in the control or distribution of content. Entertainment via OTT platforms has increased significantly with the rise in internet penetration and smartphone usage globally. Various benefits associated with OTT platforms such as access to a wide array of content including movies, TV shows and live streaming services on demand and at affordable subscription plans have appealed viewers to shift from linear TV to streaming services.
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+ Hotstar, Hulu, Apple TV+, YouTube, and Facebook. Netflix holds the leading position attributable to its robust content library and continues to invest heavily in original programming. The key opportunities in the market include increased content production and regional expansion plans by major players. Global OTT platforms are focused on expanding their geographical footprint by offering localized content and payment methods to address language and other barriers in international markets.
Market drivers
One of the key drivers for the growth of OTT Content Market is the evolving viewing habits of consumers. Younger audiences are adopting digital platforms for their entertainment needs due to mobility and access to content on any device anytime. The growth in simultaneous screened households with multiple devices and viewers is encouraging OTT platforms to come up with innovative features like shared viewing experiences. Improved connectivity speeds worldwide and the growing adoption of smart TVs are also acting as catalysts for the OTT market growth.
PEST Analysis
Political: There are no strict regulations imposed on the OTT content market.
Economic: The economic growth has positively impacted disposable incomes which in turn drive the demand for streaming platforms and high quality OTT content.
Social: Youth preferences for on-demand content on digital and mobile platforms has created a strong social demand for OTT services.
Technological: Advancements in broadband connectivity, mobile networks and devices have enabled seamless delivery of high quality video and audio streaming. Subscription models and personalized recommendations further enhance the user experience.
Geographical regions with high market concentration
The developed markets of North America and Western Europe currently account for the largest share of the global OTT content market in terms of value. Countries like the United States, United Kingdom, Germany and France have high smartphone and broadband penetration facilitating widespread adoption of OTT platforms.
Fastest growing region
The Asia Pacific region is expected to witness the highest growth in the OTT content market over the forecast period. Countries like India, China, Indonesia, Vietnam and Philippines offer immense growth potential driven by rising disposable incomes, growing middle class, urbanization and proliferation of low-cost smartphones and data plans. Additionally, local content creation is driving subscriber growth in Asia.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
