Over the Top (OTT) Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 0.6 Trillion |
| Market Size (2029) | USD 1.27 Trillion |
| CAGR (2024 - 2029) | 16.14 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
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*Disclaimer: Major Players sorted in no particular order |
Over the Top (OTT) Market Analysis
The Over The Top Market size is estimated at USD 0.6 trillion in 2024, and is expected to reach USD 1.27 trillion by 2029, growing at a CAGR of 16.14% during the forecast period (2024-2029).
The over-the-top (OTT) market refers to delivering video, audio, and other media content over the internet directly to users, bypassing traditional distribution channels like cable or satellite television. OTT platforms provide on-demand access to a wide range of content, including movies, TV shows, live events, and original programming.
- Over-the-top (OTT) is a film and television content platform provided via a high-speed internet connection instead of a cable or satellite provider-based platform. OTT adoption has significantly aided the video, music, podcast, and audio streaming category. Increasing adoption may be attributed to narrow genre choices, packaging flexibility, wider device availability, internet penetration, and lower costs. The rising demand for customized content led to significant adoption rates of OTT devices.
- The ongoing shift toward commoditizing sporting and entertainment services and growing competition among OTT providers are expected to drive the over-the-top (OTT) market. In recent years, there has been a significant shift in how sporting events and entertainment content are consumed. Traditionally, these services were primarily delivered through cable and satellite TV subscriptions, with limited options for customization and on-demand viewing. However, the rise of OTT platforms has disrupted this model by offering a wide range of sporting events, live broadcasts, and entertainment content directly to consumers.
- The increasing adoption of Subscription Video on Demand (SVOD) services in emerging markets is expected to drive the over-the-top (OTT) market. Due to several factors, SVOD services have gained significant popularity worldwide, including in emerging markets. The expanding middle class and rising disposable incomes in many emerging economies have contributed to the growth of SVOD services. As more individuals have the financial means to afford subscriptions, there is an increased demand for access to a wide variety of content through OTT platforms.
- Video content piracy is a significant issue affecting the OTT market. Piracy involves the unauthorized distribution and consumption of copyrighted content, leading to revenue losses for content creators and legitimate streaming platforms. It undermines the business models of OTT providers, who rely on subscription fees or advertising revenue to sustain their operations and fund content creation.
- The COVID-19 pandemic significantly impacted the over-the-top (OTT) market. The global health crisis and associated lockdown measures led to a surge in demand for streaming services and accelerated the growth of the OTT industry in several ways. With people staying at home due to restrictions and seeking entertainment options, the demand for streaming services skyrocketed. Many individuals turned to OTT platforms for movies, TV shows, documentaries, and other forms of content. This surge in demand resulted in a significant increase in subscriptions for established streaming services and the launch of new platforms.
Over the Top (OTT) Market Trends
Adoption of Smart Devices and higher Internet Speeds is Expected to Drive Over the Top (OTT) Market
- The growth in the adoption of smart devices and greater access to higher internet speeds are key factors driving the growth of the over-the-top (OTT) market. The increasing penetration of smartphones, tablets, smart TVs, and other connected devices has provided users with more avenues to access OTT services. These devices come equipped with internet connectivity and support streaming applications, making it easier for consumers to watch their favorite shows, movies, and other content on demand.
- The availability of high-speed internet connections, such as broadband and 4G/5G mobile networks, has played a crucial role in enabling seamless streaming experiences. While the increase in Internet users is a worldwide trend, regional variances exist.
- According to Cisco Systems, North America is likely to have the greatest internet adoption rate during the projection period (followed by Western Europe). Still, the Middle East and Africa are expected to increase (10% CAGR from 2018 to 2023). Faster internet speeds allow for smoother playback, reduced buffering times, and the ability to stream high-definition (HD) and ultra-high-definition (UHD) content. This has greatly improved the overall user experience and contributed to the growing popularity of OTT services.
- The combination of smart devices and high-speed internet has also led to increased personalization and convenience. OTT platforms leverage data analytics and recommendation algorithms to understand users' preferences and provide personalized content recommendations. Users may access content whenever and wherever they want, as long as they have an internet connection.
- These factors have fueled the growth of OTT platforms, attracting many subscribers and driving the revenue generated by subscription fees and advertisements. As a result, traditional media companies and broadcasters have recognized the importance of OTT and have launched their streaming services or partnered with existing OTT platforms to tap into this expanding market.
North America is Expected to Hold the Significant Market Share
- The North American OTT market has witnessed significant growth in recent years. North America is home to some of the most prominent and established OTT platforms, including Netflix, Amazon Prime Video, Hulu, and Disney+. These platforms have gained a large subscriber base and offer a vast content library, including movies, TV shows, documentaries, and original productions.
- Streaming devices, such as Roku, Apple TV, Amazon Fire TV, and Google Chromecast, have seen widespread adoption in North America. These devices provide access to various OTT platforms and allow users to stream content directly on their TVs.
- North America has experienced a significant shift in consumer viewing habits, with an increasing number of individuals opting for OTT services and not subscribing to traditional cable or satellite TV services. OTT platforms' flexibility, cost-effectiveness, and personalized content offerings have contributed to this trend.
- Sports streaming has gained traction in North America, with major sports leagues and organizations launching their OTT platforms or partnering with existing services. These platforms offer live sports events, exclusive content, and behind-the-scenes coverage to cater to the growing demand for sports content.
- Localization of content is a significant trend in the North American OTT market. Providers invest in original content production specific to the region, targeting local preferences and demographics. This approach helps attract and retain subscribers and differentiate platforms in a competitive market.
Over the Top (OTT) Industry Overview
The over-the-top (OTT) market is fragmented. With many media and content companies jumping on the streaming TV bandwagon, the marketplace is becoming increasingly competitive, creating even more competition for high-quality content to keep viewers hooked. The companies are focusing on product innovation to gain consumer attention. Major players in the market are Netflix Inc., Amazon.com Inc.(Prime Video), The Walt Disney Company (Hulu), Tencent Holdings Ltd, and Roku Inc. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
- February 2024 - Shemaroo Entertainment, a media and entertainment conglomerate, collaborated with four international telecom operators to expand its OTT platform, ShemarooMe. This partnership with Zain, STC, Mobily in Saudi Arabia, and Vodafone in Qatar, facilitated by DCB (Direct Carrier Billing) partners, 3A net, and one97 communications, showcases the company's global commitment to offering diverse entertainment experiences.
- February 2024 - Verimatrix collaborated with Amazon Web Services (AWS) to further increase scalability, availability, and ease of use for its Streamkeeper Multi-DRM cloud-based OTT content security platform.
Over the Top (OTT) Market Leaders
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Netflix, Inc.
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Amazon.com Inc. (Prime Video)
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The Walt Disney Company (Hulu)
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Tencent Holdings Ltd
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Roku Inc.
*Disclaimer: Major Players sorted in no particular order
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Over the Top (OTT) Market News
- July 2024: Hyderabad-based Nettlink, a publicly traded platform, is set to impact the over-the-top (OTT) streaming services sector significantly. This strategic initiative aligns with the company's strong market performance. Nettlink, listed on the CR market and known for its rigorous company evaluations, consistently demonstrated solid fundamentals and exceptional performance.
- May 2024: The South African Broadcasting Corporation (SABC) appointed Mangomolo, an Over-The-Top (OTT) video platform provider, to enhance its SABC+ platform. SABC+, the corporation's OTT service, delivers a diverse range of TV and radio channels for streaming on internet-connected devices. The platform is now poised for a significant upgrade.
Over The Top (OTT) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Ecosystem Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Adoption of Smart Devices and Greater Access to Higher Internet Speeds
5.1.2 Ongoing Shift Towards Commoditization of Sporting and Entertainment Services Coupled with Growing Competition Among OTT Providers
5.1.3 Increasing Adoption of SVOD (Subscription - Based Services) in Emerging Markets
5.2 Market Restraints
5.2.1 Growing Threat of Video Content Piracy and Security Threat of User Database Due to Spyware
5.3 Impact of Macro Economic Factors on the OTT and TV industry
6. MARKET SEGMENTATION
6.1 By Type of Service
6.1.1 SVOD
6.1.2 TVOD
6.1.3 AVOD
6.2 By Geography***
6.2.1 North America
6.2.2 Europe
6.2.3 Asia
6.2.4 Australia and New Zealand
6.2.5 Latin America
6.2.6 Middle East & Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Netflix Inc.
7.1.2 Amazon.com Inc. (Prime Video)
7.1.3 The Walt Disney Company (Hulu)
7.1.4 Tencent Holdings Ltd
7.1.5 Roku Inc.
7.1.6 Google LLC (YouTube)
7.1.7 DAZN Group Limited
7.1.8 NBC Universal (Hayu)
7.1.9 PCCW Media Group (Viu)
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Over the Top (OTT) Industry Segmentation
An over-the-top (OTT) application is an app or service that avails a product over the Internet and bypasses traditional distribution practices. Services that are available over the top are most typically related to media and communication and are generally, if not always, lower in cost than the traditional method of delivery. The study outlines the key regional trends and provides insights into the OTT industry, which focuses on localization as a means of differentiation.
The over-the-top (OTT) market is segmented by type of service (SVOD, TVOD, and AVOD) and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa). The report offers the market size in value terms in USD for all the abovementioned segments.
| By Type of Service | |
| SVOD | |
| TVOD | |
| AVOD |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East & Africa |
Over The Top (OTT) Market Research FAQs
How big is the Over The Top Market?
The Over The Top Market size is expected to reach USD 0.6 trillion in 2024 and grow at a CAGR of 16.14% to reach USD 1.27 trillion by 2029.
What is the current Over The Top Market size?
In 2024, the Over The Top Market size is expected to reach USD 0.6 trillion.
Who are the key players in Over The Top Market?
Netflix, Inc., Amazon.com Inc. (Prime Video), The Walt Disney Company (Hulu), Tencent Holdings Ltd and Roku Inc. are the major companies operating in the Over The Top Market.
Which is the fastest growing region in Over The Top Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Over The Top Market?
In 2024, the North America accounts for the largest market share in Over The Top Market.
What years does this Over The Top Market cover, and what was the market size in 2023?
In 2023, the Over The Top Market size was estimated at USD 0.50 trillion. The report covers the Over The Top Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Over The Top Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key factors driving the OTT Market?
Key factors driving the Over the Top (OTT) Market are a) Increased internet penetration b) Proliferation of smart devices c) Rising demand for content on-demand
What challenges does the OTT Market Face?
Major challenges faced by the OTT Industry are a) Data privacy concerns b) Intense competition c) Need for continuous technological enhancements
OTT Industry Report
The global Over The Top (OTT) market is witnessing substantial growth, fueled by the rising adoption of smart devices and the widespread availability of high-speed internet that enhances streaming capabilities. This growth is reflected in the shift from traditional broadcasting to on-demand, personalized media services, particularly in North America, which boasts a significant OTT market share due to its advanced technological infrastructure. Key trends in the OTT industry analysis include the diversification of subscription models and strategic partnerships that expand content libraries and technological capabilities. Despite challenges like content piracy and the high costs of content creation, the industry sees opportunities in leveraging AI and VR to improve user experiences. The OTT market is segmented by service type, platform type, and region, fostering a competitive landscape that drives innovation and strategic initiatives to increase market share. For a detailed overview, including statistics on the OTT market size and insights into future trends, download a free PDF sample of this industry analysis from Mordor Intelligenceā¢.
