OTT Services Market Research Report: By Type (Online Gaming, Music Streaming, Video on Demand, Communication), Monetization Model (Subscription-Based, Advertising-Based, Transaction-Based), Streaming Device (Smartphones and Tablets, Laptops and Desktops, Gaming Consoles), Service Vertical (Media and Entertainment, Education and Learning, Gaming, Service Utilities) - Global Industry Analysis and Growth Forecast to 2030

Market Overview

The global over-the-top (OTT) services market generated ~$92 billion revenue in 2020. The key factors responsible for the market’s growth include the rising penetration of the internet and smart devices and increasing internet speed.

The COVID-19 pandemic with the imposition of multiple lockdowns had a positive impact on the OTT services market. People were forced to stay home which brought a surge in the online content being consumed around the world. According to the India Brand Equity Foundation, the OTT sector in India grew by 30% during the lockdown (between March and July 2020). As COVID-19 continues to spread around the world many moviemakers are releasing new movies on OTT platforms, which is further creating traction in their subscription rate.

Smartphones and Tablets Category Held Largest Market Share in 2020

The increasing usage of smartphones and tablets coupled with the growing internet penetration has been responsible for the dominance of the smartphones and tablets category on the streaming device segment in the OTT services market. In recent years, due to technological advancements, internet penetration has increased drastically. According to the World Bank, the percentage of the population using the internet increased from 34.2% in 2012 to 51.1% in 2019. Furthermore, the average usage of smartphones is increasing day by day, in part due to the availability of streaming applications such as Netflix, Amazon Prime, and Hulu, on such portable devices.

Transaction-Based Model to Show Highest Growth Rate during Forecast Period

The transaction-based model is projected to show the fastest growth during the forecast period, based on monetization model. Through this model, the key players in the OTT services market generate revenue by selling the license of a software product which can be used by a single user or a group of users. In addition, consumers tend to purchase the whole content such as a full-license video game with all the features to avail the full benefits of online gaming.

North America Held Largest Market Size in 2020

The high penetration of smart devices such as smart TVs, smartphones, and tablets, combined with the high internet penetration makes North America the largest OTT services market in 2020. In 2018, according to the World Bank, 88.5% of the total regional population has access to the internet. Furthermore, the strong economy of the countries in North America is responsible for advancements in technologies which further helps in digitalization. Additionally, due to the presence of a number of companies in the region, the competitive scenario brings benefits such as package flexibility and better availability of regional content, which enhances the user experience.

Deployment of 5G Is Key Trend in Market for Over-The-Top Services Market

With modernization, the way people spend their leisure time has changed. The availability of internet-enabled devices, coupled with more-affordable internet plans, has resulted in people spending more time on online media and entertainment, gaming, and other platforms. Additionally, 5G networks offer increased data speed, while also lowering the cost. Therefore, due to the need for enhanced internet speed and surging usage of state-of-the-art applications, the deployment of 5G network and services is expected to increase in sectors the media and entertainment, commercial, education, healthcare, finance, and many other sectors. Some of the countries that have begun deploying 5G network are Australia, South Korea, Taiwan, Japan, the U.S., the U.K., and Germany. Thus, the deployment of 5G networks is a major trend in the OTT services market.

Increasing Internet and Smart Device Penetration Propelling Market Advance

The affordable nature of smart devices and their ability to access high-speed internet has brought users closer to the content available online. Consumers can access OTT content through internet-connected phones (including Android and iOS mobile devices), smart TVs, set-top boxes, gaming consoles, tablets, desktop, and laptop computers. In addition, the average time spent on smart devices is increasing, as people are spending more time using various applications on these smart devices.

Moreover, the internet is impacting distribution and consumption channels for media. With better network coverage and advanced technologies (4G/LTE, 5G, and optical fiber networks), data consumption across the globe has risen. Hence, with the rising internet and smart devices penetration, the target audience for OTT platforms will increase significantly.

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Market Players Involved in Product Launches to Gain Significant Position

The global market for OTT services is fragmented in nature. Some of the major players in the market are Netflix Inc., Roku Inc., Amazon.com Inc., The Walt Disney Company, Google LLC (YouTube), and Apple Inc. In recent years, players in the OTT industry have been involved in the launch of platforms and services in order to attain a significant position. For instance:

• In March 2021, Netflix Inc. began testing a new plan in India for INR 299 per month, which will be called mobile+. This plan will allow members to stream the content in 720p HD quality on smartphones and computers. The mobile+ plan will not be accessible on TVs or support multiple screens simultaneously.
• In February 2021, Hulu launched a free no-ad program with a 30-day trial. After the 30-day period completes, users will be charged $11.99 monthly. With the plan, users will receive unlimited access to entertainment, without any interruption.

Key Players in OTT Services Market Are:

Market Size Breakdown by Segments

The global OTT services market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.

Based on Type

• Online Gaming
• Music Streaming
• Video on Demand (VoD)
• Communication

Based on Monetization Model

• Subscription-Based
• Advertising-Based
• Transaction-Based

Based on Streaming Device

• Smartphones and Tablets
• Laptops and Desktops
• Gaming Consoles

Based on Service Vertical

• Media and Entertainment
• Education and Learning
• Gaming
• Service Utilities

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific (APAC)
  • Japan
  • China
  • India
  • Australia
  • South Korea
• Latin America (LATAM)
  • Brazil
  • Mexico
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa