Dublin, Feb. 20, 2023 (GLOBE NEWSWIRE) -- The "Global Over-the-Top (OTT) Market by Type (Game Streaming, Audio Streaming, Video Streaming, Communication), Monetization Model (Subscription-based, Advertising-based, Transaction-based), Streaming Device, Vertical, and Region - Forecast to 2027" report has been added to ResearchAndMarkets.com's offering.
The global Over-the-Top (OTT) services market is expected to grow 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 pandemic, people were forced to be locked in their houses. This led to the rise in demand of OTT services during lockdown. Other factors such as 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.
Rise in Number of Partnerships Between OTT Vendors and Content Producers to Support Over-The-Top Services Market Growth
The global Over-the-Top (OTT) services market is expected to grow 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. During the pandemic, people were forced to be locked in their houses. This led to the rise in demand of OTT services during lockdown. Other factors such as 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.
Video Streaming type segment to grow at the highest CAGR during the forecast period
Due to the pandemic, people demanded new videos to be uploaded on the OTT platforms which were not related only to entertainment but to healthcare, news, information, education, tutorials etc. The pandemic gave rise to new small players in the OTT market which were focused on regional content and were adopted by the viewers at a high rate. Existing players such as Roku, Netflix, Amazon Prime, and Apple TV saw an exponential rise in subscribers. The subscription-based VoD is expected to grow at a substantial rate, with users expressing their willingness to pay for premium services for streaming content.
Smartphones and Tablets streaming devices segment to lead the OTT services market in 2022
The vast majority of the world’s internet users - 92.1% - use a mobile phone to go online at least some of the time, and mobile phones account for more than 55.7% of online time, as well as close to 60% of the world’s web traffic. Smartphones and tablets thus prove to be the highest consumption devices for OTT services. The major factors for smartphone and smart tv usage for OTT are optimized content delivery, improved mobile internet connection, and on-the-go high-definition streaming. The inception of OTT video streaming platforms, such as Netflix, Hotstar, and Amazon Prime leading to the growth of digital video consumption through these devices. OTT entertainment apps have become the most penetrated app category among smartphone users after social networking, chatting, and eCommerce apps.
Subscription-based monetization model segment to grow at the highest CAGR during the forecast period
The subscription-based model is one of the most popular monetization models and requires fixed payment for a specific period. It is a business model where the user must pay a subscription price to gain access to video streaming services. The subscription fee may be charged daily, weekly, monthly, or annually, depending on the service opted for by the customer. Once the user has paid for access, he can watch any number of videos on any device with sufficient internet access. This model benefits both the company and the customer due to the predictability of revenue for the company and monthly fee for the customer. Subscription pricing strategies can be made according to functionality, discounted to motivate bulk purchases, metered according to usage levels, or optimized to reward loyalty. The subscription model depends on the time of day the service is used, is adjusted to motivate activity from geographic regions, and is term-based to secure long-term commitments or adjusted in cooperation with partner promotions and advantages of a subscription model for sellers. The subscription-based model is widely adopted by consumers globally, as it empowers them to pay for the specific content they want and is a major reason audiences do not prefer cable and other traditional providers as much.
Media and entertainment service verticals segment to grow at the highest CAGR during the forecast period
COVID-19 has changed the way audience consume media and entertainment content. Initially the content was confined to TV, radio and cinema. However, with the digitalization of media and entertainment mediums, the consumers’ can now access information or preferred channels at any time with their digital devices. Major production houses in the media and entertainment service vertical are focusing aggressively on OTT platforms by releasing new, original content to keep the customers satisfied. Enterprises can easily communicate with their customers via messaging services. By utilizing OTT messaging services, enterprises can interact with their consumers to deliver media and advertising content via rich messaging channels.
APAC OTT services market to grow at the highest CAGR during the forecast period
Major economies in the Asia-Pacific (APAC) include China, India, Japan, Australia and New Zealand. The proliferation of smart devices, the availability of broadband, and internet connectivity, adoption of advanced technologies such as 5G, 4G, large number of subscribers due to high population, and a dynamic local content ecosystem, are few major reasons for the growth of OTT services market in this region. This region has also seen a major rise in local or regional OTT content providers post pandemic. People in this region want to view content in their local languages which are more related to their local culture. Due to this, the OTT market has a high demand for upcoming OTT players in this region. Existing players offering Video Streaming such as YouTube, iQiyi, Tencent Video, ByteDance, Netflix, Amazon, Hotstar, and Hulu Japan, will account to a major share of revenue along with the huge penetration of instant messaging apps, such as WhatsApp, Facebook Messenger, Line, and WeChat.