Over The Top (OTT) Market size is set to grow by USD 439.12 bn from 2023-2027, growing preference for cloud streaming services to boost the market growth, Technavio

NEW YORK, May 10, 2024 /PRNewswire/ -- The global over the top (ott) market size is estimated to grow by USD 439.12 bn from 2023-2027, according to Technavio. The market is estimated to grow at a CAGR of 24.85% during the forecast period. 

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Market Driver

• The market trend is the increasing prevalence of partnerships and acquisitions.
• This trend coincides with the market's growth driven by rising demand for audio and video OTT content.
• Companies are strategically forming partnerships to leverage the growing demand for OTT content, aiming to gain a competitive advantage and expand their customer base.
• Significant partnerships and acquisitions include: 
• Amazon Prime Video's launch of its channels vertical in India in September 2021, collaborating with eight other subscription-based OTT video streaming players. This initiative enables Prime Video Channels to offer a diverse range of content from various platforms, including movies, documentaries, short films, and lifestyle content.
• In September 2021, Zee Entertainment Enterprises Ltd (ZEEL) and Sony Pictures Networks India (SPNI) merged in the Indian OTT space to enhance profitability and market share across South Asia.
• These partnerships and acquisitions facilitate access to new digital audio and video content, driving market growth in the forecast period.
• Overall, these factors contribute to the market's ongoing expansion.

Market Challenges

• Illegal downloading and piracy pose significant obstacles to market growth.
• Piracy presents a major challenge globally, impacting subscriptions on a wide scale.
• While some European countries have piracy laws in place, others lack stringent regulations.
• Copyright infringement is widespread in countries such as Portugal, the Netherlands, Spain, Latvia, and Bulgaria.
• Switzerland's laws offer protection to torrent users but prohibit file uploading.
• The transition to digital music and the widespread availability of online content have exacerbated piracy challenges.
• The absence of digital piracy laws in numerous countries and the utilization of VPNs exacerbate the issue.
• Canada, Brazil, and India grapple with substantial piracy issues, leading to revenue losses for broadcasters and original streaming services.
• Despite existing copyright laws, piracy persists due to various circumvention techniques.

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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 video segment experienced remarkable growth, reaching USD 60.25 billion in 2017 and continuing to ascend until 2021. The surge in smart device adoption, notably smartphones and tablets, has been a key driver for video content demand. Additionally, investments in 4G networks and preparations for the imminent 5G network have heightened the need for video content. The forthcoming 5G network promises superior performance, featuring faster data rates, reduced latency, and increased traffic capacity, facilitating seamless video content downloading and streaming on mobile devices. Consequently, there has been a significant uptick in video-on-demand subscriptions, further bolstering the global market's growth trajectory.

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Market Research Overview:

The Over-the-Top (OTT) market is undergoing rapid expansion, driven by the rising demand for media content delivered via alternative channels to traditional cable and satellite television. OTT platforms offer on-demand access to a wide array of content, granting consumers greater flexibility compared to conventional TV services. With competitive subscription rates and improved user experience, OTT services are revolutionizing home entertainment. These platforms boast diverse online content, including local programming and podcasts, with streaming licenses enabling accessibility across various OTT devices. Furthermore, OTT providers employ social media marketing strategies to deliver personalized content recommendations and attract users, highlighting tailored genre selections and flexible packaging options.

The market continues to thrive, offering consumers a plethora of options for accessing TV shows, live events, and original programming through online platforms. As consumers shift away from traditional viewing methods, the appeal of diverse film and television content on OTT services grows, facilitated by high-speed internet connections. Unlike traditional cable or satellite providers, OTT adoption allows users to narrow down genre preferences and select flexible viewing packages for on-demand content. Content creators are exploring innovative business models to monetize their offerings through subscription fees, while technological advancements such as faster internet speeds and smart TV integration enhance playback experiences and minimize buffering times for high-definition (HD) and ultra-high-definition (UHD) content across broadband and 4G/5G mobile networks.

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