Over the Top Market by Type (Game Streaming, Audio Streaming, Video Streaming, and Communication), Monetization Model (Subscription-based, Advertising-based, and Transaction-based), Streaming Device, Vertical and Region - Global Forecast to 2027
Over the Top Market Overview & Report Summary, Global Size
The global Over The Top Market size was worth approximately $202.5 billion in 2022 and is expected to generate revenue around $434.5 billion by the end of 2027, projecting a CAGR of 16.5% during 2022-2027.
Rise in demand of OTT during lockdown, global and local players offering freemium models in price-sensitive markets, internet proliferation with penetration of smart devices, and flexibility and ease-of-use to offer seamless customer experience are major factors for the over the top market growth.
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Over the Top Market Growth Dynamics
Driver: Flexibility and ease-of-use to offer seamless customer experience
Viewership dynamics have changed the way consumers watch videos and consume television content. There is a drift from traditional TV viewership to online content consumption, which acts as a major driver in the growth of Over the top players. Home entertainment has made its way via streaming services, enabling customers to consume the offered content depending on their preferred choice of genre, comfort, freedom, and flexibility. Viewers are further provided with a plethora of choices, with titles from diverse genres within the vast library to choose from at any given time. Owing to this ease of use and flexibility, viewers can have a seamless experience
Restraint: Disparity in opinion between producers and aggregators over licensed business model
Streaming licensed content can act as a major revenue contributor and as a major restraint for players in the Over the top Market. This is due to the presence of the same licensed content across competitive platforms. In terms of global players, the license fee paid to the foreign licensor would be considered royalty and the OTT service providers would have to comply with regional tax regulations while making payments to content producers or aggregators. The definition of royalty between artists and OTT players over content withholds the production of original content.
Opportunity: Partnership with national producers and film studios across regions on SVoD models
OTT players focus on generating content that is original and local, which is based on the concerned region to drive their Over the top Market growth. These players partner with national producers and directors for such content production. The main aim of such partnerships is to explore untapped markets to reach the unreached audience that is unable to consume content owing to language barriers. National producers and film studios are aware of the grip of viewers’ and their consuming patterns, creating an opportunity for the major Subscription VoD (SVoD) players to penetrate the market and increase the number of viewers and subscribers.
Challenge: Difficulty in retaining subscribers due to high competition
With many OTT services available to users, it is a challenge to attract new subscribers and, further, to retain them. Introductory offers are usually free for the customers or are at a reduced rate. Subscribers can opt for a free trial and then opt out when it ends; meanwhile, the lack of new content drives away subscribers, and the complex user interface can push customers to unsubscribe from the service. To prevent this, many service providers focus on creating high-quality content and a smooth user experience. Also, in the initial phase of using the OTT service, the content is original and new. However, after the content fails to justify the full price of the subscription, the viewers are able to unsubscribe from the service. There is also an emergence of free, ad-supported alternatives, creating immense competition for premium service providers.
Gaming service vertical to hold the largest market size during the forecast period
Online gaming companies need to reach out to a large number of global customers, avoiding the presence of limitations across the entire gaming experience. These companies aim at delivering a fast and secured online gaming experience, offering a rich media experience, and tracking the record of users that use various gaming applications. The consistent engagement of end users in the gaming sector enables companies to make notable developments across the segment in terms of High Quality (HQ) delivery over handheld devices, such as smartphones and tablets
Smartphones and tablets in gaming service vertical segment to record the fastest growth rate during the forecast period
Game streaming end users are mainly young viewers who aim for ease of accessibility of the content. Smartphones and tablets provide anytime and anywhere access to game streaming and therefore, these devices are expected to record the fastest growth rate during the forecast period. The streamers can record videos and live streams in impressive HD quality without the need of large equipment or a specific setup, saving money and time. Smartphones and tablets have dedicated apps for game streaming depending upon the operating system i.e. Android or iOS. Also, the upcoming 5G technology which can be accessed over these devices will help to increase the adoption rate of OTT services in the gaming service vertical.
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North America to hold the largest market size during the forecast period
North America consists of developed countries with well-established infrastructure, which generate a huge demand for OTT solutions in the region. Countries that contribute the most to the Over the top Market in North America are the US and Canada; the reason for the dominance of these countries is their well-established economies, which enable investments in new technologies. North America, the most developed region, is home to large verticals capable of investing in reliable and advanced IT infrastructure for growing data traffic, thereby opening new opportunities for adopting OTT solutions.
Key Market Players:
Key market players profiled in the Over the top Market report are Meta (US), Netflix (US), Amazon (US), Google (US), Apple (US), Home Box Office (US), Roku (US), Rakuten(Japan), IndieFlix (US), Tencent (China), and Kakao (South Korea).
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Report Metrics |
Details |
| Market Size in 2022 | $202.5 billion |
| Revenue Forecast Size for 2027 | $434.5 billion |
| Estimated Growth Rate | CAGR of 16.5% |
| Largest Market | North America |
| Key Driving Factors | Flexibility and ease-of-use to offer seamless customer experience |
| Key Growth Opportunities | Partnership with national producers and film studios across regions on SVoD model |
| Market size available for years | 2022–2027 |
| Base year considered | 2021 |
| Forecast period | 2022-2027 |
| Forecast Market Size | Value |
| Market Segmentation | Type, Streaming Devices, Monetization Model, Services, Region |
| Region covered | Asia Pacific, Europe, North America and RoW |
| Companies Covered |
Panasonic (Japan), NXP Semiconductors (Netherlands), Renesas Electronics (Japan), Blackberry (Canada), and Visteon Corporation (US) are top players in the market A total of 23 companies are profiled in the report |
This research report categorizes the Over the Top (OTT) Market to forecast revenues and analyze trends in each of the following submarkets:
Based on type component: Type
- Game Streaming
- Audio Streaming
- Video Streaming
- Communication
Based on streaming devices: Streaming Devices
- Smartphones and Tablets
- Desktops and Laptops
- IPTV and Consoles
Based on monetization model: Monetization Model
- Subscription-based
- Advertising-based
- Transaction-based
Based on service verticals:
- Media and Entertainment
- Education and Learning
- Gaming
- Service Utilities
Based on region:
-
North America
- US
- Canada
-
Europe
- UK
- Germany
- France
- Italy
- Spain
- Nordic Region
- Rest of Europe
-
APAC
- China
- India
- Japan
- Australia and New Zealand
- Rest of APAC
-
Latin America
- Brazil
- Mexico
- Rest of Latin America
-
MEA
- Kingdom of Saudi Arabia
- United Arab Emirates
- South Africa
- Middle East & Africa
Recent Developments:
- In October 2021, Netflix made its biggest acquisition by buying Roald Dahl Story Co. The acquisition would build on the partnership to create a slate of animated TV series. The projects under these would promote more ambitious ventures of creating a unique universe across animated and live-action films and TV, publishing, games, immersive experiences, live theatre, consumer products, and more.
- In June 2022, Amazon partnered with American entertainment company AMC Networks to offer its content on Amazon Prime Video channels in India. As part of the partnership, Amazon Prime Video would offer ad-free subscription service AMC+ and AMC’s streaming service Acorn TV on Prime Video channels in India on a subscription basis.
- In April 2020, Synamedia, one of the world’s largest independent video software providers, partnered with Google Cloud to expand its video network portfolio with new over-the-top (OTT) offerings ‘as a service.’ With this partnership, Synamedia would be able to further address customer needs for high availability, increased scalability and maximized performance for OTT services while simultaneously reducing operational costs and complexity, particularly with live sports events. The tech innovators came together to maximize OTT service uptime and achieve broadcast quality latency.
- In May 2022, Mattel, Inc. announced a partnership with HBO Max on a pair of new live-action American Girl specials based on the hit doll and book line. The first special, American Girl: Corinne Tan (wt), focused on the brand’s 2022 Girl of the Year of the same name. Produced by MarVista Entertainment, a Fox Entertainment Company, American Girl: Corinne Tan would premiere in December on Cartoon Network and the following day on HBO Max. A second American Girl special would follow in 2023.
- In April 2021, The Walt Disney Company (DIS) and Sony Pictures Entertainment (SPE) announced a multi-year content licensing agreement for US streaming and TV rights to Sony Pictures’ new theatrical releases across Disney Media & Entertainment Distribution’s vast portfolio of platforms, including its streaming services Disney+ and Hulu, as well as linear entertainment networks including ABC, Disney Channels, Freeform, FX, and National Geographic. The deal covers theatrical releases from 2022 to 2026 and begins for each film following its Pay 1 TV window.
- In November 2022, AMC Networks and Roku announced an expanded partnership to feature AMC Networks’ high-quality content and targeted streaming services across The Roku Channel’s broad and growing ecosystem. The agreement included the addition of 11 free ad-supported streaming (FAST) channels created and programmed by AMC Networks to The Roku Channel, including an exclusive channel, AMC Showcase, which would feature many of AMC’s signature dramas, including Mad Men.
- In December 2021, Tencent partnered with Shiseido to build a D2C (Direct to Consumer) model and strengthen its social commerce business to provide new services to Chinese consumers globally. Applying the know-how learned from this partnership to the entire Shiseido group, the company would strengthen its global growth by accelerating its group-wide digital transformation and enhancing capability development in terms of digitalization.
- In September 2021, Amagi, a global leader in cloud-based SaaS technology for broadcast and connected TV, strengthens its partnership with Rakuten TV, one of the leading video-on-demand (VoD) platforms in Europe, for channel distribution and monetization. Rakuten TV was the first Video on Demand platform in Europe that combined transactional video-on-demand (TVoD), advertising video-on-demand (AVoD), Free Ad-Supported Streaming TV (FAST), and subscription video-on-demand (SVoD) services. For Rakuten TV, Amagi delivers a lineup of nearly 50 third-party linear channels, working alongside Rakuten TV’s primary monetization partner Rakuten Advertising. These included BITE, Bon Appétit, Brat TV, IMG EDGEsport, Insight TV, PopSugar Fitness, Qwest TV, Talk Radio TV, and XITE.
Frequently Asked Questions (FAQ):
What is the global Over the Top Market Growth?
The global Over The Top (OTT) Market size is projected to grow from $202.5 billion in 2022 to $434.5 billion by 2027.
What is the growth rate of Over the Top Market ?
Over The Top (OTT) Market is registering a CAGR of 16.5% during forecast perios, 2022-2027.
What are the major revenue pockets in the Over the Top Market currently?
North America is estimated to hold the largest market share in the OTT market in 2022. North America is one of the most technologically advanced markets in the world.
Who are the leading players in the Over the Top Market?
Major vendors in the Over the top market are Meta (US), Netflix (US), Amazon (US), Google (US), Apple (US), Home Box Office (US), Roku (US), Rakuten(Japan), IndieFlix (US), Tencent (China), and Kakao (South Korea).
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The study involved 4 major activities to estimate the current size of the Over-the-Top (OTT) services market. Exhaustive secondary research was done to collect information on the OTT services market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain using primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, the market breakup and data triangulation procedures were used to estimate the market size of the segments and sub-segments of the OTT services market.
Secondary Research
In the secondary research process, various secondary sources, such as D&B Hoovers, Bloomberg, BusinessWeek, and Dun & Bradstreet, were referred to identify and collect information for this study. These secondary sources included annual reports, press releases, and investor presentations of companies; whitepapers, certified publications, and articles by recognized authors; gold standard and silver standard websites; regulatory bodies; trade directories; and databases.
Primary Research
The OTT services market comprises several stakeholders, such as OTT operators, OTT service providers, venture capitalists, government organizations, regulatory authorities, policymakers and financial organizations, consulting firms, research organizations, academic institutions, resellers and distributors, and training providers. The demand side of the OTT services market consists of all the firms operating in several industry verticals. The supply side includes OTT service providers, offering OTT services. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Given below is the breakup of the primary respondents:
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the size of the global OTT services market and various other dependent submarkets in the overall market. An exhaustive list of all the players who offer solutions and services in the OTT services market was prepared while using the top-down approach. The market share for all the players in the market was estimated through annual reports, press releases, funding, investor presentations, paid databases, and primary interviews. Each player was evaluated based on its operational model component (type, monetization model, streaming devices). The aggregate of all companies’ revenues was extrapolated to reach the overall market size.
Furthermore, each subsegment was studied and analyzed for its global market size and regional penetration. The markets were triangulated through both primary and secondary research. The primary procedure included extensive interviews for key insights from the industry leaders, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), directors, and marketing executives.
Data Triangulation
After arriving at the overall OTT services market size using the market size estimation processes as explained above, the market was split into several segments and subsegments. The data triangulation and market breakup procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The data was triangulated by studying various factors and trends from both the demand and supply sides.
Report Objectives
- To determine and forecast the global OTT services market by type, monetization model, streaming device, service vertical, and region from 2022 to 2027, and analyze the various macroeconomic and microeconomic factors that affect the market growth
- To forecast the size of the market segments with respect to 5 main regions, namely, North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America
- To analyze each submarket with respect to individual growth trends, prospects, and contributions to the overall OTT services market
- To profile key market players; generate a comparative analysis based on their business overviews, service offerings, regional presence, business strategies, and key financials; and provide companies with in-house statistical tools required to understand the competitive landscape
- To track and analyze competitive developments, such as mergers and acquisitions, product developments, partnerships and collaborations, and Research and Development (R&D) activities, in the market
- To provide detailed information about major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the OTT services market
Available Customizations
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Generating Response ...
Growth opportunities and latent adjacency in Over the Top Market
provide historical data from 2015 to current
Can you please tell me the contribution in percetages () per region and country? Eg: Latin America: 20 Mexico: 10
Monetization model of OTT covered in the report looks very attractive.