The global OTT Content Market is estimated to be valued at US$ 132.68 Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The OTT Content market comprises of various over-the-top (OTT) content providers that stream audio, video, games and other media to connected devices like smartphones, computers and tablets bypassing telecom operators or cable networks. OTT providers offer a range of content like movies, TV shows, news, sports and web series through subscription Video-on-Demand (VoD) and advertising-based VoD services. The market has evolved tremendously over the years with growing internet penetration and rising demand for on-demand consumption of content across various devices.
Market key trends:
One of the key trends gaining traction in the OTT content market is the rising popularity of subscription-based video on demand services. Major players like Netflix, Amazon Prime and Disney+ have seen exponential growth in subscriber bases on back of extensive library of exclusive and original content. Further, evolving consumer preference towards streaming content on-the-go on mobile devices has prompted OTT players to optimize offerings for smaller screens. Growing adoption of virtual reality technologies also provides new opportunities for immersive viewing experiences in areas like sports, films and gaming. Meanwhile, partnerships between telecom operators and OTT providers allows consumers to access streaming services through bundled plans, thereby promoting cord-cutting.
Threat of new entrants: The threat of new entrants in the OTT content market is moderate. Establishing a business requires significant capital investments and partnerships with content providers and platform owners.
Bargaining power of buyers: The bargaining power of buyers is high due to the availability of diverse content and platforms. Buyers can easily switch between platforms based on prices and quality of content.
Bargaining power of suppliers: The bargaining power of content suppliers is high given the scarcity of premium and exclusive content. Major platforms depend on prominent content owners and producers.
Threat of new substitutes: The threat of substitutes is moderate as alternative entertainment options like gaming, social media, and live entertainment exist. However, video streaming continues to gain popularity.
Competitive rivalry: The competitive rivalry in the OTT content market is high among global platforms to acquire new subscribers and exclusive content through partnerships and mergers.
The global OTT Content Market Share is expected to witness high growth, exhibiting CAGR of 14% over the forecast period, due to increasing popularity of video streaming services and proliferation of smart devices. The market size is projected to reach US$ 967.56 Bn by 2030 from US$ 132.68 Bn in 2023.
On the regional front, North America dominated the global OTT content market in 2023 with a share of over 35%, owing to high subscription base of leading video platforms in the US. However, Asia Pacific is anticipated to witness the fastest growth during the forecast period, majorly driven by increasing internet and smartphone penetration in India and China.
Key players operating in the OTT content market include Akamai Technologies, Apple Inc., Google Inc., LeEco, Netflix, Microsoft Corporation, Amazon, Inc., Facebook, Inc., IBM Corporation, and Limelight Networks. Major platforms are investing heavily in development of exclusive and original content to attract and retain more subscribers worldwide.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it