US OTT Market Size (2024 - 2029)

US OTT Market Analysis

The US OTT Market size is estimated at USD 56.61 billion in 2024, and is expected to reach USD 102.28 billion by 2029, growing at a CAGR of 12.56% during the forecast period (2024-2029).

The United States is one of the largest OTT markets in the world. The high penetration of smart devices, like smart TVs and smartphones, growing demand for VOD content, and a high rate of per-user payment are some of the major factors driving the country's OTT market. Most of the top global OTT vendors, like Netflix and Amazon, are US-based, providing an advantage to the regional market.

• The increasing gravitation toward OTT content allows US citizens to get rid of cables, geographic restrictions, and broadcast schedules and fundamentally changes how video is sold, produced, and consumed. Thus, increasing adoption has been attributable to customized genre choices, package flexibility, wider device availability, internet penetration, and lower costs. Netflix and Amazon are the most commonly subscribed OTT platforms in the country.
• With increasing revenue numbers, the surging percentage of viewing time going to OTT video content reflects the streaming growth and is changing the country's entertainment landscape. According to the Uscreen, viewers spend an average of 21 hours per week consuming content in the United States, equivalent to a part-time job streaming digital media in 2024. Notably, 65% of content is consumed via mobile or TV apps rather than web browsers.
• However, some costs for OTT providers also rise along with increased consumption, with services impacted by varying degrees depending on the content delivery network model employed. As the OTT viewing amount increases, so does the OTT provider's delivery cost since CDN services are usually charged for the content delivered.
• Moreover, the hours spent on TV have risen, and people are getting used to watching TV content online. This entails a positive growth outlook on a near-term basis. On the vendor front, Viacom is a significant vendor offering a direct-to-consumer (D2C) service on the back of Pluto TV, the free streaming service company in the United States.

US OTT Industry Segmentation

Over-the-top (OTT) content is delivered over the Internet at the request and to suit the requirements of individual consumers rather than through traditional channels such as cable, broadcast television companies, or over-the-air live TV broadcasting.

The US OTT market is segmented by type (SVoD, TVoD, and AVoD). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.