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Over the Top Market Size
Over the Top Market size is poised to grow with a lucrative CAGR from 2024 to 2032, driven by the increasing adoption of smart connected devices across the globe.
The proliferation of smartphones, smart TVs, and other connected devices is expanding the reach and accessibility of over the top (OTT) content. Consumers are increasingly preferring the convenience of streaming services on devices, further creating a surge in the demand for OTT platforms. The seamless integration of OTT apps on smart devices is also offering enhanced user experiences.
However, the presence of stringent government regulations and policies may slow down the market development to some extent. With the growing popularity of these services, governments are enacting local taxes, security, and content laws for OTT service providers. To cite an instance, in September 2023, the Indian government expanded the COTP (Cigarettes and Other Tobacco Products) film laws to OTT platforms. Such policies and rules may impact the convenience of consumers for using OTT services, further impacting the market growth.
Over the Top Market Trends
The higher popularity of subscription video-on-demand services, including Netflix, Hulu, and Amazon Prime, among others, in providing customers with unlimited access to a wide choice of programs each month will contribute to the industry development. As per credible sources, Netflix was estimated to have 251.15 million customers by the end of 2023.
Lately, multiple subscribers are using mobile applications instead of traditional desktop browsers to watch video content owing to low data prices and the increase in smartphone usage. Furthermore, the influx of new service providers in the market is making way for rivalry, investments in premium content, and the creation of new content to engage and attract new subscribers, benefitting the market growth.
Over the Top Market Analysis
Based on type of service, the SVOD segment is projected to gain significant traction between 2024 and 2032, mainly led by the fast-growing middle-class population and higher disposable incomes in multiple emerging economies. Most SVOD services offer competitive pricing models for providing subscribers with cost-effective alternatives to traditional cable and satellite TV. The robust ability of these services to provide localized content and subtitles for enhancing the appeal to diverse audiences will add to the segment growth.
In regional landscape, the North America over the top (OTT) market will witness commendable growth through 2032, due to the high availability of high-speed internet. The rising need for content generation, consumption, and distribution is driving the popularity of live streaming and short-form content in the region. Several businesses and organizations are focusing on developing innovative streaming services for catering to diverse content preferences and offering real-time experiences to viewers, boosting the market expansion. To cite an instance, in August 2023, the U.S. space agency, NASA, announced plans to develop its live-streaming service to provide viewers with a variety of space-related information.
Over the Top Market Share
Leading firms offering OTT services, such as Netflix, Yahoo and Google among others are collaborating with partners, such as traditional mobile network operators (MNOs) and OTT video providers to expand as well as capture a significant industry share. These firms are also emphasizing product innovations to garner a large consumer attention.
Some of the key OTT industry players include:
- Limelight Networks
- Netflix, Inc.
- Yahoo, Inc.
- Google, Inc.
- Apple, Inc.
- Facebook, Inc.
- Microsoft Corporation
- Tencent Holdings Ltd.
Over the Top Industry News
- In August 2023, Viacom18 completed the merger of its two OTT sites, JioCinema and Voot. With this initiative, nearly 90% of Voot Select subscribers successfully migrated to JioCinema
- In September 2023, Tata Play Ltd., a DTH service provider, introduced Apple TV+ to its OTT aggregation service Tata Play Binge, marking the debut of its streaming video platform on an Indian aggregator.