Entertainment has undergone a seismic shift in recent years, with Over-the-Top (OTT) platforms revolutionizing the way we consume content. As traditional cable and satellite subscriptions decline, OTT services have emerged as the new frontrunners, captivating audiences with their convenience, flexibility, and diverse offerings. In this article we cover some of the key statistics, trends, and predictions that are shaping the future of streaming.
Global OTT Market Growth
The OTT market is experiencing unprecedented growth on a global scale. According to recent projections, the number of OTT users worldwide is expected to reach a staggering 5.27 billion by 2024, a significant increase from the 4.95 billion users recorded in 2023 [7].
Year | Number of OTT Users |
2029* | 6.33 billion |
2028* | 6.14 billion |
2027* | 6.0 billion |
2026* | 5.76 billion |
2025* | 5.54 billion |
2024* | 5.27 billion |
2023 | 4.95 billion |
2022 | 4.54 billion |
2021 | 4.51 billion |
2020 | 4.11 billion |
This surge in adoption can be attributed to factors such as increasing internet penetration, the rising demand for on-demand content, and the availability of high-quality exclusive programming.
In terms of revenue, the OTT video market is set to generate an impressive $316.40 billion by 2024 [14]. The United States is poised to lead the charge, with OTT revenues in the country projected to reach $132.90 billion in 2024 [19]. This growth is driven by the increasing popularity of subscription-based services, as well as the rise of ad-supported platforms.
Subscriber Count and Revenue
As the OTT landscape evolves, the battle for subscribers intensifies. Netflix, the pioneer of the streaming revolution, continues to dominate the market with around 270 million subscribers worldwide as of Q1 2024[20]. However, other major players are rapidly gaining ground. Disney+, launched in November 2019, has already amassed over 160 million subscribers [4], while Amazon Prime Video boasts an impressive 200 million subscribers [4].
Amazon announced in 2023 that they would open prime to OTT Advertising, a huge opportunity for marketers.
The revenue generated by these platforms is equally impressive. Global OTT TV episode and movie revenues are expected to reach $228 billion by 2029, a substantial increase from the $164 billion recorded in 2023[3]. Subscription-based services (SVOD) will remain the primary revenue source, with projections indicating a growth of $30 billion between 2023 and 2029, reaching $139 billion [3]. Ad-supported platforms (AVOD) are also gaining traction, with revenues expected to reach $68 billion by 2029 [3].
OTT User Demographics and Behavior
OTT platforms cater to a diverse user base, with younger generations leading the charge. Among viewers aged 18-24, a staggering 87% prefer to access TV content through the internet [14]. This shift in consumption patterns is driven by the desire for flexibility, personalized content, and ad-free experiences.
User behavior is also evolving, with binge-watching becoming the norm. On average, adults consume 38 hours of video content per month [4], with 70% of Gen Zers watching more than three hours of mobile OTT video content daily [4]. The popularity of live streaming is also on the rise, with live content earning 27% more minutes of watch time per viewing compared to video-on-demand [14].
OTT User Content Preferences and Trends
Original content has emerged as a key differentiator for OTT platforms. Netflix, for example, invested a whopping $17 billion in original programming in 2021 [4]. Other major players, such as Amazon Prime Video and Apple TV+, are also heavily investing in exclusive content to attract and retain subscribers.
In addition to original programming, niche content targeting specific demographics and interests is gaining momentum. Platforms are increasingly focusing on local content and regional languages to cater to diverse audiences worldwide.
Advertising on OTT Platforms
As the OTT market expands, advertisers are recognizing the immense potential of these platforms. In 2024, brands are expected to spend $30.10 billion on streaming advertisements, compared to $60.56 billion on traditional TV ads [14]. Ad-supported tiers offered by platforms like Hulu, Netflix, and Max are becoming increasingly popular, providing brands with new opportunities to reach cord-cutters and cord-nevers.
The rise of Connected TV (CTV) advertising is also noteworthy. In Q4 2023, TVs accounted for 58% of spending for streaming video ad inventory purchased through traditional buys, while mobile devices accounted for 32% [14]. This highlights the importance of cross-device targeting and measurement in the OTT advertising landscape.
Impact on Traditional Media
The meteoric rise of OTT has had a profound impact on traditional media. Cord-cutting has become a widespread phenomenon, with over 65% of cord-cutters opting for free or reduced-cost ad-supported services [14]. As a result, pay-TV services are facing significant challenges, with global revenue expected to shrink at a -0.8% CAGR from 2021 to 2026[13].
Traditional media companies are adapting to this new reality by launching their own streaming services or partnering with existing platforms. The lines between OTT and linear TV are blurring, with many viewers now consuming content across multiple platforms and devices.
Future of OTT and Predictions
As we look ahead, the future of OTT appears bright. The industry is poised for continued growth, with user penetration expected to reach 53.0% by 2027 [13]. Emerging technologies such as virtual reality (VR) and augmented reality (AR) are set to enhance the viewing experience, with around 25% of the global population expected to use VR and AR technology by 2026 [13].
Personalization will also play a crucial role in the future of OTT. Platforms will increasingly leverage artificial intelligence and machine learning to deliver highly targeted content recommendations and personalized advertising experiences.
The OTT industry has witnessed a remarkable transformation in recent years, reshaping the media landscape and redefining the way we consume content. With billions of users worldwide, soaring revenues, and a plethora of innovative platforms, the OTT market shows no signs of slowing down.
As traditional media grapples with the challenges posed by streaming, OTT platforms are poised to capitalize on the changing consumer preferences and technological advancements. The future of entertainment lies in the hands of these dynamic and ever-evolving platforms, promising an exciting and immersive viewing experience for audiences across the globe.
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