OTT overview
Thanks to technological advancements and broadcast innovation, global demand for over-the-top (OTT) content has never been greater. As OTT services allow users to stream media content via the internet without the need for cable or satellite subscriptions, they have become an attractive alternative for audiences wanting to bypass geographic restrictions and broadcast schedules alike. As of February 2022, the number of OTT video users worldwide stood at 3.28 billion, with penetration rates surging in countries like the United Kingdom, Canada, and the United States. In these developed digital markets, consumers are gradually cutting the cord and switching away from traditional pay-TV consumption in favor of more flexible, affordable, and expansive video formats. Unsurprisingly, the highest share of OTT media revenue is generated by SVOD channels.SVOD market trends and key players
Subscription video-on-demand (SVOD), which allows users to stream unlimited digital video content at a fixed monthly rate, has become a popular pastime for millions of TV and movie lovers. In 2021, the global number of SVOD subscriptions amounted to 1.2 billion, a figure that is projected to grow by over 400 million within the next six years. SVOD revenue is highest in the United States, where most major streaming channels such as Netflix, Amazon Prime Video, and Disney Plus are readily available. By 2026, the family-friendly streaming service is predicted to surpass Netflix as the leading SVOD platform based on global subscriber count. With more competitors entering the streaming race, the number of SVOD subscribers and average SVOD subscriptions per user are forecast to increase in most regions. However, rising subscription costs and an overabundance of content are also leading to subscriber churn among several providers.AVOD, TVOD, BVOD, and the future of linear TV
While SVOD services provide around-the-clock access to a wide range of video entertainment, users can also choose from various non-subscription-based video streaming options. Popular models include digital rentals (TVOD), broadcaster video-on-demand (BVOD), and ad-supported video-on-demand (AVOD) platforms such as YouTube and Pluto TV. Seeing that these (mostly) free offers draw millions of users every day, the shift away from linear broadcasting, live TV consumption, and other dynamic changes in viewing preferences and video streaming behavior are becoming more visible than ever.
