Market Research Report
Over-the-top Market with COVID-19 Impact Analysis, By Services, By Content Type, By Devices, By End-User and By Region - Size, Share & Forecast from 2021-2027
|Over-the-top Market with COVID-19 Impact Analysis, By Services, By Content Type, By Devices, By End-User and By Region - Size, Share & Forecast from 2021-2027|
Published: February 1, 2022
AnalystView Market Insights
Content info: 333 Pages
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Over-the-top market was worth USD 106.2 billion in 2020 and is expected to be worth USD 290.4 billion by 2027, growing at a CAGR of 13.8% from 2021 to 2027.
Over the top (OTT) is a film and television content platform that is delivered over the internet rather than through a cable or satellite provider. Currently, OTT adoption has significantly aided the video, music, podcast, and audio streaming categories. The narrow genre choices, packaging flexibility, internet penetration, wider device availability, and overall lower costs can all be attributed to increased adoption. Furthermore, rising demand for customized content resulted in significant OTT device adoption rates.
Players providing OTT platform services are no longer only interested in being viewed as platforms for accessing movies and TV shows but are also investing in content creation and licensing. As a result of this scenario, there is direct competition with traditional TV as well as among the OTT industry. The deployment of advanced technologies within the platforms heightens the competition even more. A report published by the World Advertising Research Centre (WARC) based on data from the mobile trade body GSMA predicted that by 2025, more than 1.3 billion people would access the internet via smartphone and PC. The increasing adoption of 5G networks by operators is also attributed to the consumption of content and related services, causing 4G LTE resources to be depleted.
The COVID-19 pandemic had a positive impact on the OTT landscape, with audiences consuming more content at home via OTT devices. According to Zuora's Subscription Economy Index, trends of the COVID impact on subscriber acquisition rates from March 2020 (compared to the previous year) suggested that the global subscription growth rate for OTT Video Streaming companies grew 7 times in March 2020.
The global Over-the-top market is segmented on the basis of services, content type, devices, end-user, and region.
Further, the market is divided into two segments based on services; online services and managed services. The term "managed services" refers to a service network in which service providers have significant control over the network capacity to provide services, whereas online services rely on the public internet for content delivery. Because of the availability of high-speed internet and the proliferation of electronic devices, the managed services segment is expected to grow steadily in the coming years.
On the basis of content type market is segmented as, OTT communication services, media services, and application services. The OTT media services segment is expected to dominate in terms of market share, with a significant increase during the forecast period. The growing number of platforms that offer live-streaming, such as concerts, sports, online gaming, and music streaming, among others, as well as video-on-demand services, is expected to drive demand for media services.
In terms of devices Global Over-the-top market is segmented into smartphones, smart TVs, laptops, tablets, gaming consoles, set-top boxes, and others. Because of the expanding 5G capabilities and new smartphone launches, the smartphone category is likely to dominate the market. Smartphone use reached 65 percent globally in 2019, according to the GSMA Mobile Economy Report. The demand for these services is projected to increase as a result of this. Similarly, as more people use laptops and tablets to access online material, this segment's share is expected to grow. In addition, a number of service providers are now offering direct streaming on laptops and tablets, which is fuelling market demand.
During the forecast period, the rise of smart TV is expected to fuel market growth. New and enhanced smart TV capabilities are being offered by a variety of electrical device manufacturers. Smart TVs are being developed by companies such as Oppo, Samsung Electronics, Sony Corporation, Realme, Nokia, and others. This is projected to increase the number of opportunities in the market.
The Over-the-Top (OTT) Industry is fragmented, with many media and content businesses jumping on the streaming TV bandwagon. As a result, the market is growing more competitive, putting even more pressure on high-quality content to keep consumers engaged. To attract customers' attention, businesses are focused on product innovation.
To increase their market reach, key companies in the market are strategically cooperating with telecom providers, content suppliers, streaming partners, and others. These companies are growing their businesses by collaborating and partnering with local service providers. These market players are also putting money into the development of new streaming services and platforms. Leading market companies use acquisitions as one of their primary growth tactics. For instance, Apple Inc. established a co-operation with SK Telecom Co., South Korea's top wireless carrier, for online video streaming via Apple TV+.
The scope of this report covers the market by its major segments, which include as follows: