February 21, 2024
OTT Content Market
Ict

OTT Content Market is Estimated to Witness High Growth Owing to Increased Use of Smart Devices

The OTT content market comprises digital contents such as videos, audios, games, communication services and applications delivered directly via the internet without involvement of a multiple-system operator (MSO) in the control or distribution of the content. The market has gained significant momentum in recent years due to increased use of smartphones and smart TVs worldwide. OTT service providers offer a wide range of on-demand video contents including movies, TV shows and web series at relatively low subscription costs which provide a compelling value proposition to users. Moreover, the availability of high-quality yet cheaper internet connectivity along with innovations in digital broadcasting infrastructure has facilitated the delivery of immersive multimedia experiences across multiple smart devices.

The Global OTT Content Market is estimated to be valued at US$ 152.85 Mn in 2024 and is expected to exhibit a CAGR of 7.3% over the forecast period 2024 to 2030.

Key Takeaways
Key players operating in the OTT content market are Conair, Helen of Troy, Cezanne, Kizure, InfinitiPro, BaBylissPRO, Hot Tools, Remington, HSI Professional, Bio Ionic, Russell Hobbs, Xtava, Herstyler, Bed Head, John Frieda, Tresemme, Revlon, Paul Mitchell, CHI, Babyliss. The key players are investing heavily in expanding their regional presence and developing new video streaming platforms to cater to the rising demand for digital content.

There is high opportunity for market consolidation and growth through strategic partnerships between content creators and service providers. OTT players are also focusing on developing personalized recommendation engines and customized billing options to improve user experience.

Advancements in 5G technology, artificial intelligence and machine learning are allowing OTT platforms to provide seamless hyper-personalized content delivery, interactive video formats and immersive media experiences. These emerging technologies will play a crucial role in shaping the future of OTT streaming.

Market drivers
The primary driver for the OTT Content Market is the widespread adoption of smartphones and smart televisions. Growing penetration of high-speed internet coupled with affordable data plans is also boosting the consumption of online videos. Rapid technology upgrades in terms of higher resolution, HDR support and Dolby audio on smart devices has further fueled the demand for high quality digital media. The availability of versatile OTT applications across various platforms along with rising subscription to broadband and direct-to-home services act as a catalyst for market growth.

Current Challenges in OTT Content Market:
The OTT content market is facing many challenges currently. Due to stiff competition from various players, it is difficult to retain existing subscribers and acquire new ones. Keeping subscribers engaged through regular new content updates and unique personalized experience is a major challenge. Maintaining operational efficiency with rising content acquisition and production costs is another key issue. Monetizing content in emerging international markets is another hurdle due to piracy and different content tastes. Managing huge volumes of user data for personalized recommendations while ensuring data privacy and security is another major challenge for OTT players.

SWOT Analysis
Strength: Large library of exclusive quality local and international content, advanced personalization algorithms using data analytics, expanding device availability.
Weakness: Huge content costs, dependency on network bandwidth availability, vulnerability to piracy.
Opportunity: Growth in number of smartphone and broadband users, expansion to smaller towns and cities, bundling with other digital services.
Threats: Entry and expansion of rival players, regulations around data privacy and localization, changing consumer preferences.

Geographical Regions:
In terms of market value, North America is currently the largest concentrated region for OTT content with USA contributing majority of revenues. The availability of high-speed fixed and wireless broadband infrastructure, early adoption of streaming services, and presence of prominent local players have aided growth. Western Europe is another top region driven by countries like UK, Germany, France and Italy. However, Asia Pacific region is emerging as the fastest growing with India and China expected to lead demand in coming years due to rising internet and smartphone penetration coupled with growing media consumption.

Fastest Growing Regions:
Asia Pacific region is projected to be the fastest growing for OTT content market between 2024-2030 with a CAGR of over 12%. Countries like India and China with their huge population and expanding middle class adopting digital and online media will accelerate revenues. Proliferation of affordable data plans and low-cost smartphones are fueling streaming adoption. Local content creation and partnerships with telecom majors will aid subscriber base growth. Emerging nations in Latin America and Middle East/Africa also offer significant scope due to increasing digital infrastructure and willingness to pay for quality content on-the-go.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it