Everything you need to know about the OTT market in 2023
An average consumer spends 38 hours a month watching videos on mobile apps. This is almost a whole work week! Therefore, it’s not surprising that OTT (Over-The-Top) services have become so popular in the last few years.
Since the OTT market is expected to grow further in the future, it’s important to understand the dynamics of this market. In this blog post, we will explore the size and growth of the OTT market, the major players in the industry, the challenges and opportunities it presents, and its future.
Market size and growth of the OTT market
In 2022 the global video streaming market size was valued at USD 89.03 billion. Various factors have contributed in the past to the rising popularity of this market. For instance, the technological evolution of digital devices in the last few years has positively impacted the growth of the industry.
Also, the global changes that influenced our every day life in the past years had a significant impact on the OTT market. After all during the COVID-19 pandemic, people started to consume significantly more content online.
As a consequence, companies across various industries started to adapt digital media services into their offerings. This enhanced the development of multiple streaming solutions and services which in turn lead to huge popularity amongst consumers.
From 2023 to 2030 the OTT market is expected to expand at a compound annual growth rate (CAGR) of 21.5%. This growing trajectory is ensured by the ongoing technological innovations, as the viewers’ needs for high quality video streaming grows.
Many video streaming service providers already use blockchain technology and Artificial Intelligence (AI) to enhance video content quality and improve other aspects of video production and upload. These technological advancements are expected to evolve further in the future.
Major players in the OTT market
The major players operating in the over the top (OTT) market are Netflix, The Walt Disney Company, Apple Inc., Amazon.com, Inc., Paramount Global, Alphabet Inc. (YouTube), WarnerMedia Direct, LLC. (HBO Max), Sling TV L.L.C., Rakuten Group, Inc., and Kakao Entertainment Co., Ltd. Currently, Netflix, Amazon Prime Video and Disney+ are the leading players in the OTT market based on their global market share.
These platforms offer a wide range of content, including movies, TV shows and original content. Their business models vary, with some offering subscription-based services and others offering ad-supported models. One of the key features that set these platforms apart is their ability to offer personalized recommendations based on the users’ viewing history.
Challenges in the OTT market
While the OTT market presents significant opportunities, it also poses several challenges. One of the biggest challenges is the rising cost of content. As more platforms enter the market, the competition for exclusive content increases, leading to higher prices. Another challenge is the ability to offer content that is as close as possible to the consumers’ expectations. To find out more about your consumers’ needs to make them more loyal to your OTT service, you can use SAYTV’s community software!
Opportunities in the OTT market
The OTT market presents several opportunities. For example, compared to traditional television, OTT services are able to reach audiences globally. This opens up new opportunities for advertisers. In addition, OTT services allow advertisers to reach customers in a more targeted and refined manner, which increases the success rate of the ad.
According to the Digital TV Research, the revenue of global subscription video-on-demand is predicted to surpass $126 billion dollars by 2026. For consumers, the growth of the OTT market means more options and choices for streaming video content. As the market expands, more providers will compete for customers, leading to a wider variety of content offerings and potentially lower subscription prices. Additionally, the growth of the market may incentivize providers to invest in improving the quality of their content and user experience, leading to an overall better experience for consumers.
For service providers, the revenue growth of the OTT market represents a significant business opportunity. As more consumers shift away from traditional cable and satellite TV services, providers have the opportunity to capture a larger share of the video content market. The revenue growth also allows providers to invest in developing and acquiring high-quality content to attract and retain customers.
Future outlook on the OTT market
There are several developments expected to shape the industry. One of the biggest trends is the integration of social media like features into OTT platforms, allowing viewers to share content with their friends and to interact with each other. Another trend is the rise of ad-supported models, which are expected to become increasingly popular. Finally, the development of advanced technologies such as 5G and augmented reality has the potential to significantly enhance the viewing experience for users.
In conclusion, the growth of the OTT market presents a significant opportunity for both consumers and service providers. The market has seen tremendous growth in recent years and is expected to continue its upward trajectory.
To make sure that your OTT platform stays in the game compared to the competition, it is essential that you know your viewers’ needs to make them even more loyal to your platform. With SAYTV’s integrated SDK solution, you can talk to your target group directly and understand their needs more precisely. Therefore, you can make your viewers more loyal to your service. Check out our technology here!