The evolution of Over-the-top (OTT) streaming technology, followed by the proliferation of OTT platforms, has made the sector a lucrative industry over the last decade.
The onset of the Coronavirus pandemic catalyzed the OTT industry, which primarily benefited from the extended lockdowns most countries put in force.
With people confined to their homes during the global pandemic, consumers turned to OTT applications for their daily dose of entertainment.
And as a result, major OTT players like Netflix and Amazon Prime reported a 65% and 67% uptick in their subscriptions, respectively.
Having registered a whirlwind growth over the last few years, the OTT industry is poised for steady growth in the coming years.
So, let’s look at some critical data points you should know as a consumer (or content owner)
OTT Statistics – Overall Market Trends
No brownie points for guessing.
The OTT market is growing more prominent than ever, fueled by increasing internet penetration and smartphone usage.
1. In 2020, the global OTT streaming market was estimated to be worth $171.36 billion; by 2027, it is expected to rise incrementally and stand at $1.04 trillion. That implies a 29.4% Cumulative Annual Growth Rate (CAGR).
2. By 2027, OTT is anticipated to generate more than $476 billion in revenue.
3. According to estimates, the OTT video market was worth $178 billion in 2021 and will increase by 9.72% yearly to reach $297.9 billion in 2026.
4. According to research, OTT platforms‘ subscription video-on-demand (SVOD) revenue will top $139 billion by 2027.
5. Pay-per-view or transactional video-on-demand is estimated to generate more than $12 billion in OTT income by 2027. (TVOD).
6. By 2027, OTT video downloads will produce more than $5 billion.
7. AVOD will control $180 billion of the OTT market volume by 2022.
8. Globally, OTT user penetration is expected to be 43.1% in 2022 and reach 49.9% by 2026.
9. The U.S. will generate $87.26 billion globally in 2022, making it the top market for OTT revenue generation.
10. 98% of Americans have at least one media streaming service subscription, and 75% have two or more.
OTT Statistics – Overall Market Share
The market share of major companies is the most sought-after dataset in the OTT field.
And as anticipated…Netflix clinches the top spot quite comfortably.
So, let’s look at how the market is distributed regarding the percentages of various companies.
11. Netflix is a widely used OTT streaming service, and its popularity is growing fast. With 30.8% of all OTT subscription income from the US, it accounted for the most SVOD (subscription video-on-demand) revenue in 2021.
12. With 25.9% of the market, Disney had the second-highest SVOD (subscription video-on-demand) revenue in the US in 2021.
13. In terms of subscription apps, Netflix and Tencent (non-gaming applications) were ranked second and third in 2019.
14. By the end of 2021, Netflix had 222 million users, while Disney (that also owns Hulu and ESPN) has been expanding quickly, with 179 million subscribers across the three streaming services.
15. Disney+ intends to expand further in 2023 by increasing its availability to twice as many nations.
16. With 150 million adult users in America, YouTube is the most popular platform for free streaming.
17. Overall, 13.2 % of the total OTT subscription revenue in 2021 came from YouTube subscriptions.
18. In 2021, there were 50 million subscribers to YouTube Premium and YouTube Music.
19. After HBO Max and Hulu, Amazon Prime Video, in the eyes of American adults, has the third-best selection of original programming. Movies make up the lion’s share of Amazon Prime Video’s content.
20. Over 200 million people worldwide are active Amazon Prime Video subscribers. In the United States, 66% of those aged 35 to 44 have an Amazon Prime Video subscription.
Recommended Reading
OTT Statistics – Choice of Devices / Operating Systems
The rise of smartphones and smart televisions has dynamically transformed media consumption over the last decade.
More and more people now consume media over smartphones and tablets.
Here’s how the OTT market stands viz-a-viz devices used for media consumption.
21. With a whopping market share of 69.7%, Android is the most widely used platform globally.
22. Apple’s iOS, on the other hand, holds a global share of 29.51%.
23. In North America, Apple dominates with a 56% market share compared to Android’s 43.66%, despite Android being the more prominent player overall.
24. The most notable increase in viewing time between 2020 and 2021 was on smart televisions (increased by 115%).
25. Tablets had a 43% increase over that time, PCs 38%, and mobile phones 29%.
26. The volume of content that Indians consumed on their phones increased by 80% between 2017 and 2019, which is higher than any other nation in the globe.
27. In the UK, 41% of people own a gaming console, 63% have a tablet, and 82% have a smartphone.
28. 240 billion plus hours of video content were streamed globally on mobile applications in Q4 2020.
29. An average OTT content viewer utilizes three devices and three different apps to access the material.
30. 70% of people report using their phones more frequently since the pandemic began in 2020.
OTT Statistics – Video Advertising
A great number of people are switching to OTT services from conventional platforms every day.
More the number of subscribers, the larger the size of the advertising market. Let’s look at where all the money is coming from and is spent.
31. OTT video advertising will generate $119 billion in revenue by 2023. (Source)
32. OTT video advertising should bring in $52.25 per user in 2025.
33. In OTT, 72% of viewers recall a specific advertisement they viewed.
34. In the United States, programmatic ad impressions on connected TVs climbed by 207% in 2021.
35. 66% of individuals who consume OTT video content learn about a new product or service.
36. 65% of viewers of OTT videos use a second screen to look up product details.
37. 40% of those who are OTT streaming have interrupted their show to look up or buy what was advertised.
38. On OTT, advertisements are so powerful that 72% of viewers could recall a specific one.
39. Most viewers would rather see advertisements than purchase a subscription in terms of UX.
40. Ten minutes of advertising for free OTT viewing can be tolerated by 25% of OTT viewers.
OTT Statistics – Live Streaming
Although live streaming as a technology had existed long before, the rise of OTT applications has made live-streaming more prominent in the last few years.
Thanks to technological advancements and faster network speeds.
Here’s everything you need to know about live-streaming and the associated data points.
41. Live-streaming accounted for 24% of all OTT viewing in the first quarter of 2021, an increase of 14% compared to the same period last year.
42. In the United Kingdom, BBC accounted for the maximum duration of live-streamed content in 2021, at 220 million minutes in the first week alone.
43. Millennials are the primary consumers of live-stream video material. Only 3% of people aged 55 and older claim to regularly view live-streamed videos, compared to 15% of people who claim to do so.
44. Breaking news (26%), comedy videos (25%), and how-to tutorial videos (21%) are the top three categories of OTT live video content that Americans view the most.
45. With 100 billion hours of live-streaming, YouTube accounted for most of the OTT streaming hours in 2020.
OTT Statistics – Consumer Behavior
Consumer preferences are also changing rapidly with the advancement in technology and improved accessibility of digital content.
Today, the average consumer spends more time before screens and monitors.
Every month, the average user watches about 38 hours of video content from mobile apps and OTT applications, which is almost a full workweek.
46. Compared to 2020, nearly half of the population (45%) viewed more on-demand OTT content in 2021.
47. More than any other nation in 2021, Android users in America spend most of their watching time on the Disney+ video streaming app.
48. In 2021, engagement on social media for OTT publishers increased by 24%.
49. For 30% of people throughout the pandemic, streaming video on social media was the most preferred option.
50. Consumers use their mobile devices for 4.2 hours a day on average.
Conclusion
The dynamics of the streaming market are rapidly changing, and the undercurrents of the rapid technological transformation strongly influence consumer behavior.
As the trends suggest, the market for Over-the-top platforms is only getting more significant — both qualitatively and quantitatively — as we progress through the 21st century. As the OTT bandwagon continues, we hope this article helps you understand your audience’s pulse and the market dynamics.
And, if you are a content owner, 2024 could be your breakthrough year to build an OTT platform.