The OTT Content Market is estimated to be valued at US$ 132.68 Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The OTT content market includes content delivered via the internet without involvement of multiple system operators in the control or distribution of the content. This eliminates the need to pay high subscription fees to cable television services and allows convenient access anywhere, anytime on devices like mobile, tablet, PC and smart TVs. The on-demand nature enables consumers to watch content as per their convenience without following a fixed programming schedule.
Market key trends:
One of the key trends driving growth in the OTT content market is the growing popularity of web series and movies available on-demand. Unlike television, OTT platforms allow content creators flexibility in storytelling by removing constraints on episode runtime or censorship rules. This has led to a boom in high quality, niche web series catering to diverse interests of audiences. Major players are investing heavily in producing original content like Series, films and documentaries to attract new subscribers and reduce dependency on third party content. The availability of low cost data plans and high-speed internet also allows easy streaming of high definition videos on smartphones.
Threat of new entrants: The OTT content market requires huge capital investment. However, the entry of global players with strong financial backup in the market poses high threat of new entrants.
Bargaining power of buyers: The availability of substitutes provides high bargaining power to the buyers. They can switch to alternative options easily if not satisfied with service or price.
Bargaining power of suppliers: Major OTT players produce their own content in-house, reducing dependency on content suppliers and lowering their bargaining power.
Threat of new substitutes: Emergence of new technologies like virtual reality and 5G can provide substitutes to existing OTT platforms.
Competitive rivalry: Intense competition exists between global players to acquire new customers.
Strength: Variety of content across genres, Heavy investments in original content, personalization of content experience.
Weakness: Susceptible to cyber threats, dependency on internet connectivity, piracy issues.
Opportunity: Scope of growth in developing regions, Expanding customer base, Collaborations with telcos.
Threats: Stringent regulations, Shift of customer preference, Disruption from new technologies.
The global OTT Content Market Share is expected to witness high growth, exhibiting CAGR of 14.% over the forecast period, due to increasing digitization and high-speed internet penetration. The rising number of smart device users and evolving consumer preference towards OTT platforms have been major market growth drivers.
Regionally, North America dominated the OTT content market in 2023 with highest revenue share of over 35%, driven by high spending on digital content in countries like US and Canada. However, Asia Pacific is anticipated to emerge as the fastest growing region during the forecast period, propelled by large population, increasing disposable incomes and rapid technological adoption in India and China.
Key players operating in the OTT content market are Akamai Technologies, Apple Inc., Google Inc., LeEco, Netflix, Microsoft Corporation, Amazon, Inc., Facebook, Inc., IBM Corporation, and Limelight Networks. The players are investing heavily in developing original and exclusive content libraries to attract new subscribers and strengthen their market presence. They are also collaborating with telecom operators to bundle their services for gaining additional customers.