New York, Nov. 24, 2020 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Over the Top (OTT) Market – Growth, Trends, and Forecasts (2020 – 2025)” – https://www.reportlinker.com/p05989462/?utm_source=GNW
Increasing adoption can be attributed to the narrow genre choices, packaging flexibility, wider device availability, internet penetration, and overall lower costs. Furthermore, the rising demand for customized content led to significant adoption rates of OTT devices.
– Ongoing shift toward commoditization of sporting and entertainment services, coupled with the rising competition among OTT providers is driving the market. According to the 2019 edition of ‘The Future of Sports Entertainment’ from Deltatre, the distributors of sports content across the globe are currently committed to about 15% of their total operating budget to develop the OTT technology stack and is worth over USD 6.8 billion by 2021 in the United States. With over two-thirds of consumers willing to pay up to USD 39 per month on sports content, more and more operators are prepared to invest in the sports-related tech stack.
– Further, players offering OTT platforms services are no longer interested in being viewed as platforms just for accessing movies and TV shows but are also investing in production and licensing of their content. Such a scenario has resulted in direct competition with traditional TV and among the OTT industry.The competition is further heightened with the deployment of advanced technologies within the platforms. For instance, in June 2019, an AI-based search engine device called Dabby was launched to help locate popular shows available on services/platforms.
– Growth in the adoption of smart devices and greater access to higher internet speeds is driving the market. Mobile data traffic is experiencing exponential growth, driven by data-capable devices and high-bandwidth applications such as live video streaming. Ericsson, through its Mobility Report November 2019, provides insight on mobile data traffic, which grew 68% year-on-year for Q3 2019.
– Another report published by the World Advertising Research Center (WARC) based on the data from mobile trade body GSMA indicated that over 1.3 billion people are anticipated to access the internet via smartphone and PC by 2025. The growth of mobile based internet users is also attributed to the rising adoption of 5G networks by the operators due to the consumption of content and related services, causing 4G LTE resources.
– The onset of the COVID-19 pandemic created a positive impact on the OTT landscape, with audiences consuming more content at home via OTT devices. As per Zuora’s Subscription Economy Index Report, trends of the COVID-19 impact on subscriber acquisition rates from March 1-31, 2020, in comparison to the last 12 months, suggested that the global subscription growth rate for OTT Video Streaming companies grew 7x in March 2020, as compared to the growth rate over the previous 12 months.
– Also, the data from the British Association for Screen Entertainment (BASE) suggests that the consumer spending on digital movie purchases grew by more than 87% during the COVID-19 pandemic lockdown period through June 30 to reach GBP 113 million (USD 148 million). While the growth was evident due to the lockdowns and consumers forced to stay at home, the data highlights huge gains from the OTT platforms.
Key Market Trends
Increasing Adoption of Subscription video-on-demand (SVOD) Due to Smart TV Penetration
– According to Cisco, Connected TVs will grow third fastest (at a little less than a 6 percent CAGR), to 3.2 billion by 2023 after M2M connections and smartphones. Around 33% of people watch online videos on a Smart TV, with video-enabled apps compared to 23% who use a video game console.
– In India, the top 5 metro cities account for 55% of the total OTT video platform users, while Tier one cities account for another 36% of the users. As per the survey, Hotstar leads the Indian OTT video content market, followed by Amazon’s Prime Video, SonyLIV, Netflix, Voot, Zee5, ALTBalaji, and ErosNow in terms of the percentage of respondents subscribed to each platform. ErosNow users were the most engaged users, with 68% of its users indicating that they watched content daily. The platform continues to thrive through partnerships. In India, it partnered with Xiaomi for pre-installation on smart TVs.
– Further, in September 2019, OnePlus ventured into the Indian smart TV market with the launch of OnePlus TV. The device combined imagination and intelligence to seamlessly connect mobile and home networks for the future of interconnectivity. Hungama, Eros, and ZEE5 content have been deep-integrated into the OnePlus Play dashboard. Other content partners include Amazon Prime Video, Hotstar, SonyLiv, and YouTube. This significantly shall provide growth to the Subscription video-on-demand (SVOD) segment.
– In the country such as the United States, The Walt Disney Company announced it had reached 10 million subscribers upon initial launch, putting its Disney+ service fourth on the list. Also, Netflix had 69.97 million U.S. subscribers. The subscriber base in the United States accounts for around a third of Netflix’s worldwide streaming subscriber base, which at the end of 2019 stood at 167 million.
– Further, in July 2019, DocuBay, an international documentary VOD streaming service by IN10 Media, announced a significant collaboration with Foxxum. As part of the partnership, DocuBay will provide its library of premium content on the Foxxum Smart TV platform worldwide, comprising several major markets, including Europe and the United Kingdom.
– Along with providing messaging services, some OTT apps also provide the functionalities that a broadcast channel provides to its customers. With a high adoption rate, users broadcast entertaining videos, music, local or international news to a large group of other users. This wide range of applicabilities is accelerating its adopted growth.
North America Accounts for the Significant Market Share
– In the United States, 64 million homes are accustomed to OTT, with average home viewing value is estimated at 86 hours of OTT content in a month. Furthermore, nearly 66% reach among homes with Wi-Fi, with OTT content genres primarily related to sports, education, and entertainment witnessing increasing developments.
– OTT for sports is becoming increasingly attractive. Growing investments in content acquisition across this domain highlight how numerous companies are entering the OTT space. For instance, as of August 2020, Amazon Prime announced its offerings for gamers via the launch of a service called Prime Gaming.
– Based on its earlier streaming services for movies and TV shows, the Twitch Prime/Prime Gaming is expected to provide free games, game content, and a free Twitch channel subscription, as a part of its standard Prime membership. The company additionally attributed this action to the growing market for new content for games in North America.
– Moreover, back in July 2019, DAZN, a dedicated sports OTT service, shared plans on acquiring the National Football League (NFL) rights in the United States, while Amazon acquired streaming rights to Thursday Night Football on its Prime Video service.
– Further, in January 2019, Canada-based regional operator SaskTel announced the expansion of its IPTV Service maxTV Stream to 11 more communities in the region. This new service combines the best features of traditional television with more advanced features and the latest over-the-top content from Netflix and YouTube. Such initiatives are expected to further increase the demand for OTT services in the country.
– Player such as Brightcove Beacon addresses the challenge faced by many content owners due to the continuously expanding list of viewing devices by allowing customers to launch content in multiple platforms simultaneously. In October 2019, Brightcove Inc. introduced Brightcove Beacon, a new SaaS-based OTT platform. Brightcove Beacon empowers customers to deliver captivating OTT experiences on a breadth of devices, with the flexibility of multiple monetization models to fit any business need.
The Over the Top (OTT) Market is fragmented as with many media and content companies jumping on the streaming TV bandwagon, the marketplace is becoming increasingly competitive, and it’s creating even more competition for high-quality content to keep viewers hooked. The companies are focusing on product innovation to gain consumer attention. Key players are Netflix Inc., Amazon.com, etc. Recent developments in the market are –
– September 2020 – Google announced that they are working on YouTube Shorts, which is a new way to watch and create on YouTube. Shorts is a new short-form video experience for creators and artists who want to shoot short, catchy videos using nothing but their mobile phones.
– October 2020 – Netflix Inc. partnered with Microsoft to help coders in their learning journey of Data Science and AI. Microsoft launched the Global Skills Initiative, aimed at helping 25 million people worldwide acquire new digital skills. It has launched new modules that are inspired by the new Netflix original, “Over the Moon“. It will take the user through beginners’ concepts in data science, machine learning and artificial intelligence.
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