OTT Market to Grow by USD 630.5 Billion (2024-2028) with Cloud Streaming Boost, AI-Powered Market Evolution Report- Technavio

NEW YORK, Sept. 17, 2024 /PRNewswire/ -- Report on how AI is driving market transformation- The global over the top (OTT) market size is estimated to grow by USD 630.5 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 27.77% during the forecast period. Growing preference for cloud streaming services is driving market growth, with a trend towards growing number of partnerships and acquisitions. However, illegal downloading and piracy poses a challenge. Key market players include 8x8 Inc., Alphabet Inc., Amazon.com Inc., Apple Inc., Cineverse Entertainment Corp., Comcast Corp., Deezer SA, Meta Platforms Inc., FlixFling LLC, iflix Ltd., iMPACTFUL Group Inc., Microsoft Corp., Netflix Inc., Paramount Global, Sirius XM Holdings Inc., Sony Group Corp., Spotify Technology SA, Telstra Corp. Ltd., Tencent Holdings Ltd., and The Walt Disney Co..

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Key Market Trends Fueling Growth

The global Over-The-Top (OTT) market is experiencing significant growth due to the rising demand for audio and video content. To stay competitive, vendors are forming strategic partnerships and acquisitions. In March 2022, Amazon Prime Video acquired Metro-Goldwyn-Mayer Studios (MGM), adding over 4,000 films and 17,000 TV series to its library, including franchises like James Bond and Rocky. In July 2022, Netflix bought Australian animation studio, Animal Logic, to expand its long-form animated content production. These collaborations will strengthen the market's growth trajectory during the forecast period. 

In the dynamic world of media and entertainment, Over-the-Top (OTT) platforms have taken center stage, particularly in developed countries. With an increasing demand for data traffic, OTT services including podcasts, audio streaming, and OTT media have become the new norm. Satellite providers are shifting focus from provider-based models to OTT devices for wider device availability. Personalized data and social media marketing are key trends driving growth in this sector. OTT communication, online services, and OTT applications are now accessible on Laptops, Desktops, Cloud, On-Premises, Gaming Consoles, Set-top Box, and more. Hybrid models, commercial partnerships, and vertical integrations are shaping the market snapshot. Subscription-based monetization, advertisement, and transaction-based monetization models are prevalent in SVoD services. Freemium models and Indian OTT services offer HD resolution, web performance, and high frame rates for digital video viewers. The OTT market encompasses media and entertainment, telecommunications, online gaming, and more, with e-commerce and alcohol choice adding to the mix. The future of OTT is bright, with continuous innovation and expansion. 

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Market Challenges

• The global Over-The-Top (OTT) market faces a significant challenge with piracy, which has become a major concern for content providers. The ease of downloading movies, games, and music for free, with minimal risk of legal consequences, is a pressing issue. In Europe, countries such as the UK, France, and Germany have strict piracy laws. However, in other EU countries, piracy is rampant. The shift to digital content and the growing internet base have made it harder to prevent piracy. In some countries, such as Switzerland, downloading copyrighted content for personal use is allowed but uploading is illegal. Location piracy through Virtual Private Networks (VPNs) or false location apps is also on the rise, causing a loss of revenue for broadcasters. Canada and Brazil have lenient copyright laws, restricting access to OTT services. India, with its high incidence of digital piracy, significantly impacts the sales of original streaming services. This piracy affects the revenue inflow in the global OTT market, particularly in content publishing, and may hinder the growth of the market during the forecast period.
• The Over-The-Top (OTT) market is experiencing rapid growth as more viewers shift from traditional TV to on-demand streaming services. However, challenges persist. OTT adoption faces resistance due to narrow genre choices and limited packaging flexibility. Wider device compatibility, on-demand viewing, and high-quality content in HD and UHD are essential. Content creators, business models, and subscription fees are key considerations. Subscriptions and new subscribers require a user-friendly interface and personalized recommendations. Higher internet speeds, smart devices like tablets and smart TVs, and broadband are essential for seamless playback. Buffering times and data analytics are crucial for improving the customer experience. Film studios, broadcasters, and advertisers seek to monetize OTT through subscription fees, streaming licenses, local content, and advertisements. The future of OTT includes personalization, recommendation algorithms, and revenue generation through subscription VoD, gaming services, and rich media experiences on handheld devices and game streaming with HD quality and 5G technology.

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Segment Overview 

This over the top (ott) market report extensively covers market segmentation by

1. Content Type
• 1.1 Video
• 1.2 Text and images
• 1.3 VoIP
• 1.4 Music streaming
2. Device 
• 2.1 Smartphones and tablet
• 2.2 Laptop and desktop
• 2.3 Smart TV
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Video- The Over-The-Top (OTT) market refers to the delivery of media content directly to consumers via the internet. This includes streaming services for movies, TV shows, and live events. OTT platforms provide convenience and flexibility, allowing users to access content on demand. Companies like Netflix, Amazon Prime Video, and Disney+ have significantly increased their presence in this market, offering a wide range of content at affordable prices. These platforms have become essential for many consumers, providing them with entertainment options that cater to their diverse preferences. The OTT market is expected to continue growing, as more and more consumers cut the cord on traditional TV and opt for online streaming services.

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Research Analysis

Over-the-Top (OTT) refers to video and audio media content delivered via the Internet, bypassing traditional cable and satellite television. OTT platforms offer on-demand access to a vast library of content, including movies, TV shows, podcasts, and audio streams. Subscription fees and advertisements fund these services, providing an alternative to broadcasters and traditional TV. OTT platforms prioritize customer experience, offering personalized data and wider device availability. The content selection on OTT is often more narrow compared to traditional TV, but the packaging options allow for greater flexibility. Streaming licenses enable local content and satellite providers to join the OTT market. The rise of OTT has led to increased competition and innovation in home entertainment, with streaming services becoming a significant player in the media landscape.

Market Research Overview

Over-the-Top (OTT) refers to video and audio media content delivered over the Internet, bypassing traditional cable and satellite television. OTT platforms offer on-demand access to movies, TV shows, live events, original programming, and more, available on high-speed Internet. OTT adoption is on the rise due to narrow genre choices, packaging flexibility, wider device availability, and on-demand viewing. Content creators use various business models, including subscription fees, advertisements, and streaming licenses, to monetize their offerings. OTT platforms are available on smart devices, including tablets, smart TVs, and gaming consoles, offering a rich media experience. OTT media includes high-definition (HD) and ultra-high-definition (UHD) content, personalization, data analytics, and recommendation algorithms. The OTT market generates significant revenue through subscription fees and advertisements. Broadcasters, film studios, and viewers/subscribers benefit from this new home entertainment landscape. OTT also includes podcast and audio streaming, with narrow type selections and packaging options. Social media marketing and 5G technology are driving growth in the developed countries. OTT applications extend to e-commerce, online services, OTT communication, and even gaming services. Data traffic is a concern, but higher internet speeds and provider-based solutions are addressing it. Overall, OTT offers a more personalized and convenient media consumption experience.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Content Type
• Video
• Text And Images
• VoIP
• Music Streaming
• Device
• Smartphones And Tablet
• Laptop And Desktop
• Smart TV
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio