The 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.
Market Overview:
The OTT content market involves products and services related to over-the-top video content streaming services, online video & audio services. Popular products include online video platforms, subscription video-on-demand services, ad-based video-on-demand services, IPTV services and other OTT services. These services enable users to stream video and audio content directly from the internet without requiring users to subscribe to a traditional cable or satellite pay-TV service.
Market Dynamics:
The OTT content market is primarily driven by growing popularity of mobile video streaming. Emergence of high-speed internet and availability of low-cost smartphones with powerful processors are enabling users to easily access video streaming applications and watch content on-the-go. In addition, rise of social media platforms and growing trend of user-generated content is encouraging more number of consumers to watch and share videos online. Further, availability of low-priced video streaming subscriptions plans along with rich library of on-demand content is boosting the adoption of OTT services among users across the globe. However, lack of standardization in OTT platforms and dependency on internet connectivity continue to remain key challenges for market growth.
SWOT Analysis
Strength:
OTT Content Market has a large customer base as most people use internet enabled devices for entertainment purposes. It allows easy accessibility to content anytime and anywhere due to flexible streaming of videos and movies on different devices. Many players are investing in enhancing video quality and making content available in different languages and genres leading to personalized experiences.
Weakness:
Piracy and illegal downloads posses a major threat to this market as content can be easily copied and downloaded for free. Infrastructure issues like connectivity and buffering may frustrate viewers and impact the growth of this industry.
Opportunity:
Increasing internet and smartphone penetration in developing regions provides an opportunity to tap new customer base. Companies can leverage augmented and virtual reality technologies to provide enhanced viewing experiences attracting more users. Developing content in local languages for different international markets opens up new opportunities.
Threats:
Stiff competition from traditional TV and video platforms. Changes in consumer preference and taste towards content.
Key Takeaways
The global OTT Content Market Share is expected to witness high growth, exhibiting CAGR of 14.% over the forecast period, due to increasing consumption of video content. Rapid adoption of smartphones and enhanced internet connectivity is boosting the OTT content market growth.
Regional analysis
The North American region currently dominates the OTT content market accounting for over 35% share globally in 2023 owing to high smartphone and internet penetration with presence of key players like Netflix, Amazon and Hulu in the region. Asia Pacific is expected to grow at the fastest rate due to increasing population, rising disposable incomes and improving connectivity in countries like China and India.
Key players
Key players operating in the OTT Content market are Akamai Technologies, Apple Inc., Google Inc., LeEco, Netflix, Microsoft Corporation, Amazon, Inc., Facebook, Inc., IBM Corporation, and Limelight Networks. Major players are focusing on expanding their regional presence and enhancing video quality to attract more subscriber base.
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