Over-The-Top (OTT) platforms are services where entertainment movies & TV shows are delivered straight to digital users without the requirement of a cable or satellite television subscription. These platforms encapsulate movies & TV services that are directly downloaded & viewed on the user’s demand over the internet to interconnected devices like smartphones, PCs, tablets, & consoles, among others.
Today, OTTs are at a relatively aborning stage & are widely accepted as a trending technology. Backed by the growing popularity of these platforms, especially amidst the crisis of the Covid-19 pandemic, the OTT industry is set to witness innovative & advanced transformation, enabling customers to access everything they want in a single stretch.
The Global OTT Platform Market is projected to grow at a CAGR of around 18% during the forecast period, i.e., 2022-27. The Market is primarily driven by the growing demand for video-on-demand platforms, music streaming over-the-top media platforms, etc., among customers worldwide. The global OTT Platform market saw a considerable rise owing to a gradual shift in living standards and a rapid increase in internet penetration over the last few years.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||North America: The US, Canada, Mexico|
|South America: Brazil, Argentina, Rest of South America|
|Europe: Germany, France, Italy, The UK, Spain, Rest of Europe|
|Asia-Pacific: China, Japan, India, South Korea, Australia, Rest of Asia Pacific|
|Middle East & Africa: Saudi Arabia, The UAE, Egypt, Turkey, South Africa, Rest of Middle East & Africa|
|Key Companies Profiled||Amazon.com, Inc., Netflix, Inc., Hulu, LLC, Google LLC, Apple Inc., Telstra Corporation Ltd., Facebook, Inc., Kakao Corp., Vimeo Live, Rakuten, Inc., The Walt Disney Company, iNDIEFLIX Group Inc., Home Box Office, Inc., XUMO, Others (STARZ, Showtime Networks Inc., etc.)|
|Unit Denominations||USD Million/Billion|
Besides, with its unique ability to cater to a diversified audience by supporting audience-specific entertainment content in terms of various languages and genres, OTT platforms are captivating customers to consider them for watching movies, serials, etc., thereby providing the necessary impetus required to fuel the market growth.
Another prominent factor propelling the market growth is the exponential increase in subscribers to OTT platforms worldwide. The brands dealing in OTT platform services have been making concerted efforts to make the entertainment content in line with customers' demands. Again, brands are walking extra miles to put their best leg forward by expanding their portfolios and partnership.
South Korean entertainment-tech firm Kakao Entertainment acquired Wuxiaworld, a Hong Kong-based online platform for English-language, Asian fantasy fiction to enhance its North American customer base. Such efforts by the leading market players are expected to bolster the growth of the Global OTT Platform market during the forecast period.
Based on Type:
Here, Video-On-Demand is anticipated to dominate the Global OTT Platform Market with the largest share during the forecast period. The major factor attributed to the growth of video-on-demand OTT platform services has been the personalized and tailor-made experiences, offered to the customers. The core advantage of video-on-demand OTT platform services has been making them popular among the customers including, watching at any hour, having opportunities to handpick their favorite media content, and keeping media controls in hand like rewind, stop, quick forward, etc.
Based on Monetization Model:
Of all, Subscription-Based is anticipated to witness significant growth during the past period. This growth attributes to the rising disposable income of customers predominantly across North American and Asia-Pacific regions, which has been soaring the requirement for subscription-based OTT platform services.
Along with this, the various attractive and reasonable offers benefited by the OTT platform service providers have also been amplifying the number of subscription-based model users. Such affordable offers by the companies are projected to gain notable OTT platform users in the forecast years. For instance:
Based on Streaming Device:
Among all, Smartphones & Tablets as streaming devices are anticipated to acquire the largest share in the Global OTT Platform market during the forecast period owing to the extensive usage of smartphones by customers worldwide. Another factor stimulating the market growth is, their incredible benefits such as a better and smooth user interface and convenience to carry anywhere while traveling or at home, etc., making them more desirable among the customers while considering watching the content of the OTT platform. Moreover, growing smartphone users in the countries such as India, Pakistan, Egypt, etc., are anticipated to ignite the demand for OTT platforms during the forecast years.
Geographically, the Global OTT Platform Market expands across:
North America demonstrated a noticeable market growth with a substantial average home viewing value of OTT content in a month during the historic years and is anticipated to prevail in the same trend during the forecast period.
This growth attributes to the significant rise in Wi-Fi connections & emergence of 5G connectivity across the region. Besides, substantial investment in the industry entwined with the presence of new entrants into the OTT space is also curating the fundamentals of the market across North America. For instance,
On the other hand, Asia-Pacific is anticipated to make significant contributions to the overall market expansion in the coming years. This dominance is backed by the massive population and their growing inclination toward entertainment, leaving no age bracket out of the loop.
Besides, the prevalence of Bollywood and the constant release of new movies and web series, especially across countries like India, is also fueling the demand for OTT platforms and generating lucrative opportunities for the leading players in the industry through 2027.
Regulatory Landscape in the Global OTT Platform Market
A regulatory framework to oversee the content on online platforms was proposed in 2019. Besides claiming that the rules were "unnecessary and heavy-handed," the US Federal Communications Commission (FCC) planned to bring more functional regulations.
In February 2021, The Union Government announced Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules 2021, citing the arbitrariness across the OTT platforms. The new rule seeks to establish a three-tier Grievance Redressal Mechanism for OTT platforms.
The Infocomm Media Development Authority (IMDA), an organization in the island country, mandates that service providers obtain a license. OTT services have a content code that ensures ratings, classification, and a comprehensive list of prohibited content. The agency has the authority to remove content and issue sanctions if Service providers do not adhere to the prescribed standards.
Recent Developments in the Global OTT Platform Market
Key Driver: Increasing Number of Millennial Users for OTT Platform
In the past years, the millennial users of OTT platform services have been constantly increasing, and this, in turn, positively impacts the growth of the Global OTT Platform market. The market has grown multifold over a couple of years because of pandemic-induced lockdowns in 2020, resulting in an increase in internet penetration. Further, the shift in customer preferences has been one of the major factors driving the growth of the OTT platform market. In addition, the audiences are now moving away from television sets and spends time exploring and viewing online content with flexible timings. Hence, such an inclination of millennials towards the OTT platform bolstering the market growth during the forecast period.
Possible Restraint: Mounting Concerns over Content Piracy
Due to the growing popularity of web series on the OTT platform, there have been frequent rise in the cases of content piracy reported over the last few years, which in turn, are posing restrains among the users to use these platforms. Such cases are violating the regulations and amounts to a massive loss for the makers & service platforms. This aspect might hamper the fledged growth of the OTT Platform Industry during the forecast period.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global OTT Platform Market is projected to grow at a CAGR of around 18% during 2022-27.
A. Increasing Number of Millennial OTT Platform Users to Fuel the Market Growth during 2022-27.
A. The key players in the Global OTT Platform Market are Amazon.com, Inc. Netflix, Inc., Hulu , LLC, Google LLC, Apple Inc., Telstra Corporation Ltd., Facebook, Inc., Kakao Corp., Vimeo Live , Rakuten, Inc., The Walt Disney Company, iNDIEFLIX Group Inc., Home Box Office, Inc., XUMO.
A. ‘Smartphones & Tablets’ is anticipated to emerge as the leading ‘Streaming Device’ in the Global OTT Platform Market during 2022-27.
A. ‘North America’ anticipated to dominate the Global OTT Platform Market during 2022-27.
A. Content Piracy is a prominent factor that might restrain the fledged growth of the Global OTT Platform Market during 2022-27.