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The rise in demand for OTT services during lockdown and also other factors like global and local players offering freemium models in price-sensitive markets, internet proliferation with penetration of smart devices and flexibility and ease of use to offer seamless customer experience resulted in high adoption of OTT services in developing countries. Therefore, the global Over the Top Services Market size is predicted to rise from USD 202.5 billion in 2022 to USD 434.5 billion by 2027 at a compound annual growth rate (CAGR) of 16.5% during the forecast period.
The vast majority of the world's internet users—92.1%—use a mobile phone to access the internet at least some of the time, and mobile phones account for more than 55.7% of online time and close to 60% of global web traffic. As a result, smartphones and tablets are the most popular OTT service consumption devices. Optimized content delivery, improved mobile internet connection, and on-the-go high-definition streaming are the major factors for smartphone and smart tv usage for OTT.
The introduction of OTT video streaming platforms such as Netflix, Hotstar, and Amazon Prime has increased digital video consumption via these devices. After social networking, chatting, and eCommerce apps, OTT entertainment apps have become the most popular app category among smartphone users.
Due to the pandemic, people demanded that new videos be uploaded to OTT platforms that were not only related to entertainment but also to healthcare, news, information, education, tutorials, and so on. The pandemic gave rise to new small players in the OTT market that focused on regional content and were widely adopted by viewers. Existing players such as Roku, Netflix, Amazon Prime, and Apple TV saw an increase in subscribers that was exponential. Subscription-based VoD is expected to grow rapidly, with users indicating a willingness to pay for premium services for streaming content.
The vast majority of the world's internet users—92.1%—use a mobile phone to access the internet at least some of the time, and mobile phones account for more than 55.7% of online time and close to 60% of global web traffic. As a result, smartphones and tablets are the most popular OTT service consumption devices. Optimized content delivery, improved mobile internet connection, and on-the-go high-definition streaming are the major factors for smartphone and smart tv usage for OTT. The introduction of OTT video streaming platforms such as Netflix, Hotstar, and Amazon Prime has resulted in an increase in digital video consumption via these devices. After social networking, chatting, and eCommerce apps, OTT entertainment apps have become the most popular app category among smartphone users.
Covid-19 has altered how people consume media and entertainment content. Initially, the content was limited to television, radio, and cinema. However, with the digitalization of media and entertainment mediums, consumers can now access information or preferred channels with their digital devices at any time. To keep customers satisfied, major production houses in the media and entertainment service vertical are focusing aggressively on OTT platforms by releasing new, original content. Using messaging services, businesses can easily communicate with their customers. Enterprises can interact with their customers to deliver media and advertising content via rich messaging channels by utilising OTT messaging services.
One of the most popular monetization models is the subscription-based model, which requires a fixed payment for a set period of time. It is a business model in which the user must pay a subscription fee in order to access video streaming services. Depending on the service selected by the customer, the subscription fee may be charged daily, weekly, monthly, or annually. After paying for access, the user can watch any number of videos on any device with adequate internet access.
Because of the predictability of revenue for the company and the monthly fee for the customer, this model benefits both the company and the customer. Subscription pricing strategies can be developed based on functionality, discounted to encourage bulk purchases, metered based on usage levels, or optimised to reward loyalty. The subscription model is adjusted to motivate activity from geographic regions, is term-based to secure long-term commitments, and is adjusted in collaboration with partner promotions and benefits of a subscription model for sellers.
The subscription-based model is widely adopted by consumers worldwide because it allows them to pay for only the content they want, and it is one of the main reasons audiences do not prefer cable and other traditional providers as much.
Speaking about the region China, India, Japan, Australia, and New Zealand are major economies in Asia Pacific (APAC). The proliferation of smart devices, the availability of broadband and internet connectivity, the adoption of advanced technologies such as 5G and 4G, a large number of subscribers due to the region's high population, and a dynamic local content ecosystem are just a few of the major factors driving the growth of the OTT services market in this region. Following the pandemic, this region has seen a significant increase in local or regional OTT content providers.
People in this region prefer to view content in their native languages that is more relevant to their culture. As a result, there is a high demand for new OTT players in this region. Existing video streaming players such as YouTube, iQiyi, Tencent Video, ByteDance, Netflix, Amazon, Hotstar, and Hulu Japan will account for a significant portion of revenue, as will the widespread use of instant messaging apps such as WhatsApp, Facebook Messenger, Line, and WeChat.
By Company Type: Tier 1 – 15%, Tier 2 – 40%, and Tier 3 – 45%
By Designation: C-level – 44%, Directors – 39%, Managers-17%
By Region: North America – 45%, Europe– 15%, APAC– 30%, and RoW – 10%.
Meta (US), Netflix (US), Amazon (US), Google (US), Apple (US), Home Box Office (US), The Walt Disney Company (US), Fandango Media (US), Roku (US), Rakuten (Japan), IndieFlix (US), Tencent (China), and Kakao are some of the study's prominent players across all service types (South Korea).
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Research Coverage The report investigates the over-the-top market by assessing the market chain, prevalent policies, and regulations, as well as the manufacturers, their manufacturing chain, cost structures, and contributions to the industry. The regional markets for the over-the-top market are examined by comparing product pricing in the region to the profit generated. This report also evaluates the market's production capacity, demand and supply, logistics, and regional historical performance.
