Global OTT Services Market to Boost in Coming Years – Projected to Reach worth USD 293 Billion in 2028
Published | 25 March 2022
The growth of the global OTT services market can be attributed to the rapidly growing online communication platforms with advanced technologies. Moreover, the rising integration of AR/VR in the gaming applications on smart devices, which provides real-time experience to the players while playing games is responsible for the global OTT Services market’s growth..
A recent study by the strategic consulting and market research firm; BlueWeave Consulting revealed that the global OTT Services market was worth USD 104.2 Billion in 2021 and is anticipated to reach USD 293.0 Billion by 2028 at a CAGR of 16.1%. This is attributable to swift growth and adoption of the next-generation 5G network service which is likely to augment the acceptance of OTT services for consumer entertainment in the coming years. The advanced 5G network services would provide faster as well as more reliable data speed thus enabling improved 4K video streaming with better video quality. Owing to this, OTT Services is expected to receive a boost during the forecast period.
Upsurge in The Demand for Live Streaming Channels Amidst The COVID-19 Pandemic Propelled the Market Growth
As a response to the surging demand, the OTT platform operators are likely to offer more live streaming channels in the coming future. Moreover, the OTT content is set to witness a major revolution with breaking news reaching Facebook Live, Periscope, and even YouTube. Various broadcasters in the U.S. are teaming up with multiple-channel video programming distributors (MVPDs) in order to offer a ready version of live feeds, which can be wrapped up as OTT offerings. This is remarkably fuelling the growth of the market. Furthermore, the COVID-19 pandemic and subsequent lockdowns raised the live content streaming to a remarkable extent. For instance, the live streaming sector expanded by 45% between March and April in 2020, this can be directly ascribed to the coronavirus outbreak. Zee5 saw almost an 80% increment in its subscriptions and about 50% growth in time spent lately. In addition, the surge in demand for over-the-top services in the telecommunication industry for voice and video calling as well as messaging services is anticipated to propel the market growth rate of the OTT service markets over the forecast period.
Subscription Revenue Model Accounted for The Largest Market Share in 2021
On the basis of the revenue model, the global OTT service market has been segmented into subscription model, advertisement model, hybrid models and others. Amidst the segmentation, the subscription model accounted for the largest market share in 2021. This can be ascribed to the massive popularity of the subscription video on demand (SVoD) model led by Netflix and Amazon Prime among others due to their affordable and lucrative pricing structure. Moreover, some of the OTT platforms provide messaging services as well as broadcasting capabilities that make them even more attractive for the subscribers. The subscribers can stream interesting videos, audios and worldwide news to a large group of people. This varied collection of applications is playing a major role in adoption of the SVoD services.
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Impact of COVID-19 on the OTT Services Market
Although the deadly COVID-19 pandemic had a disastrous impact on various industries, the OTT services market is one of those markets that gained tremendously as a result of the pandemic with the increasing consumption of online content in the developing economies like India and China. According to a survey conducted by InMobi, a mobile marketing platform, 46% viewers were watching more online content, while another consumer survey disclosed that the OTT consumption primetime has moved to 7 pm onwards which was earlier confined to 10 pm–12 am. Moreover, the OTT platforms are witnessing a vigorous growth in the advertisement revenues, thus increasing the popularity of the advertisement-based revenue model in the middle of the COVID-19 pandemic. For instance- five among the key ad-supported streaming platforms including Hulu, Roku, Peacock, Tubi and Pluto TV, the ad revenue touched 31% YoY in the second quarter of 2020.
North America Dominates The OTT Services Market While Asia-Pacific to Witness the Highest Growth During the Forecast Period
On the basis of the regional analysis, the global OTT services market can be segmented into North America, Europe, the Asia-Pacific, Latin America, Middle East and Africa. Amidst the segmentation, the North America dominated the global OTT services market with the largest share in 2021. U.S. accounted for about one-third of the global OTT services market. However, the Asia-Pacific region is anticipated to exhibit the highest CAGR during the forecast period. This can be attributed to the ever-deepening penetration of high-speed internet connectivity, widespread availability of public Wi-Fi have coupled with unlimited wireless data plans, which are acting as the propelling driving force behind the growth of OTT demand in the region.
The OTT Services market is a fragmented market with numerous players serving the market. The key players dominating the global OTT services market are Amazon Web Services, Inc., Apple Inc., Facebook, Inc., Google, LLC., Hulu, LLC., Microsoft Corporation, Netflix, Inc., Rakuten, Inc., Telstra Corporation Limited, Tencent Holdings Ltd., Akamai Technologies, Brightcove, Inc., Limelight Networks, Inc., Roku, Inc., Rakuten, Inc., Kakao Corp., Vimeo Live, Sling TV and other prominent players. The key marketing strategies adopted by the players are introduction of new offers, new and advanced service launches, collaborations, partnerships and acquisition to expand their customer reach.
The report's in-depth analysis provides information about growth potential, upcoming trends, and the global OTT services market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the global OTT services market along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
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