OTT Video - Worldwide

The OTT Video market is witnessing remarkable expansion globally, fueled by heightened consumer demand for flexible viewing options, innovative advertising strategies, and the prevalence of high-speed internet, enhancing content accessibility and engagement.

Customer preferences: Consumers are increasingly gravitating towards personalized OTT video experiences, driven by a desire for tailored content that aligns with their unique tastes and preferences. This trend is further influenced by the rise of binge-watching culture and the demand for diverse programming that reflects various cultural backgrounds and lifestyles. Additionally, younger demographics are prioritizing mobile-friendly viewing options, prompting platforms to optimize content for on-the-go consumption, thereby reshaping traditional viewing habits and advertising approaches.

Trends in the market: In the global OTT video market, there is a notable shift towards interactive and immersive viewing experiences, with platforms increasingly incorporating features such as live streaming and user-generated content. In Asia-Pacific, subscription-based models are gaining traction, allowing consumers to access exclusive content tailored to regional preferences. In Europe, ad-supported streaming services are rising in popularity, providing free access to diverse programming while generating revenue through targeted advertisements. This evolution is prompting content creators and advertisers to adapt strategies that align with the changing landscape, emphasizing the importance of data analytics to understand viewer behavior and preferences.

Local special circumstances: In the United States, the OTT video market thrives on diverse content preferences, driven by a multicultural population and a strong emphasis on original programming from major platforms. Mainland China's market is shaped by stringent regulatory controls, pushing local platforms to innovate with interactive content while fostering a unique blend of traditional and modern viewing habits. The United Kingdom benefits from a rich broadcasting heritage, influencing hybrid models that combine subscription and ad-supported services. In Japan, the focus on anime and gaming content reflects cultural tastes, driving platforms to tailor offerings that resonate deeply with local audiences.

Underlying macroeconomic factors: The OTT video market is significantly influenced by macroeconomic factors such as economic stability, consumer spending power, and technological advancements. In regions with robust economic growth, increased disposable income allows consumers to invest in multiple streaming subscriptions, boosting market performance. Conversely, economic downturns can lead to a shift towards ad-supported models as consumers seek cost-effective viewing options. Regulatory environments also play a critical role; countries with supportive policies encourage innovation and competition among platforms. Furthermore, global trends like the rise of mobile internet access and changing content consumption patterns shape market dynamics across different regions.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Traditional TV & Home Video and OTT (over-the-top) Services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective market. This spending factors in discounts, margins, and taxes.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, number of internet users, and internet consumption.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.