Global Over The Top (OTT) Market by Device Types (Smart TV, Laptops, Smartphones and Tablets, Gaming Consoles, Set-top Box), Content Types (Video, Voice-over Internet Protocol (VoIP), Games, Music Streaming), Revenue Model Types (Subscription, Advertiseme

The over the top (OTT) market was valued at approximately USD 81.6Billion in 2019 and is expected to surpass USD 200Billion by 2026, expanding at a CAGR of 14.1% during the forecast period 2020-2026.

An over the top (OTT) media service is a streaming media service offered directly to viewers via the Internet. OTT bypasses cable, broadcast, and satellite television platforms, the companies that traditionally act as a controller or distributor of such content. It has also been used to describe no-carrier cellphones, where all communications are charged as data, avoiding monopolistic competition, or apps for phones that transmit data in this manner, including both those that replace other call methods and those that update software. In broadcasting, over the top (OTT) content is the audio, video, and other media content delivered over the Internet, without the involvement of a multiple-system operator (MSO) in the control or distribution of the content. The Internet provider may be aware of the contents of the Internet Protocol (IP) packets but is not responsible for, nor able to control, the viewing abilities, copyrights, and/or other redistribution of the content. This model contrasts with the purchasing or rental of video or audio content from an Internet service provider (ISP), such as pay television, video on demand, and from internet protocol television (IPTV). OTT refers to content from a third party that is delivered to an end-user, with the ISP simply transporting IP packets.

Market Trends, Drivers, Restraints, and Opportunities:

Rise in demand for subscription-based services has been an aspect that is driving the OTT market. The increase in penetration of subscription-based services in emerging markets is expected to fuel OTT market growth in the upcoming years.
There is be a rise in demand for usage of applications like Google Hangouts, Facetime by Apple, and WhatsApp, who are providing user-friendly, innovative, and attractive voice and video messaging services. These products have established their presence with their high-quality offerings and their widespread acceptance across the consumers

The inability to provide high speed internet is the factor that is restraining this market. The content to be watched on OTT platforms require high speed internet. This is not possible in remote areas of developing countries as the technology advancement in those regions is less.
Increasing demand of Smart TVs is expected to provide increasing opportunities for advertisers to become content providers and offer a wide plethora of services to consumers through various platforms such as Hulu, Netflix, and YouTube.

Scope of the Report

The report on the over the top (OTT) market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Attributes Details
Base Year 2020
Historic Data 2015-2018
Forecast Period 2020–2026
Regional Scope Asia Pacific, Europe, North America, Middle East and Africa, Latin America
Report Coverage Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast

Over the Top (OTT) Market Segment Insights:

Based on device types, the market is divided into smart TVs, smartphones and tablets, laptops, desktops, gaming consoles and set-top box. Smartphones and Tablets segment to hold the highest market share during the forecast period. The inception of OTT video streaming platforms, such as Netflix, Hotstar, and Amazon Prime, coupled with the growing internet penetration, is responsible for the rise of smartphone and tablet usage, leading to the growth of digital content consumption and has triggered the growth of digital video consumption. OTT entertainment apps have become the most penetrated app category among smartphone users after social networking, chatting, and eCommerce apps.

In terms of content types, the market is divided into video, voice-over internet protocol (VoIP), games, music streaming. The market share growth by the video segment is predicted to be faster than the growth of the market by the other segments The increasing availability of video content owing to the rising penetration of smart devices such as smartphones and tablets is driving the OTT market growth. Moreover, vendors are striving to provide quality consumer-engaging content and are witnessing a steady increase in the number of subscribers year-over-year.

In terms of revenue models, the market is segregated into subscription, advertisement, transactional and hybrid. Subscription-based segment to hold the highest market share during the forecast period. The subscription model owes its success to the optimal balance of value it provides to both the company and the customer. A subscription provides businesses a direct line of revenue from the consumers without having to consult or sell to advertisers. Subscription pricing strategies can be made according to functionality, discounted to motivate bulk purchases, metered according to usage levels, or optimized to reward loyalty.

On the basis of regions, the market is segregated into North America, Europe, Asia Pacific, Latin America and Middle East and Africa. North America holds the largest market size during the forecast period. Countries that contribute the most to the OTT services market in North America include the US and Canada; the reason for the dominance of these countries is their well-established economies, which enable investments in new technologies. North America being the most developed region, is home to large verticals that are capable of investing in reliable and advanced IT infrastructure for growing data traffic, thereby opening new opportunities for the adoption of OTT solutions.

Competitive Landscape:

The global OTT market is fragmented with the presence of various regional and global players. The key market players are Facebook, Netflix, Amazon, Microsoft, Google, YouTube, Apple, Home Box Office, Roku, IndieFlix (US), Vudu (US), Hulu, Tencent, Rakuten, Kakao and Line. The market players are opting for inorganic growth strategies such as mergers and acquisitions and other strategic alliances to increase their market share. In October 2019, Netflix collaborated with Doppio Games, a conversational game company. The collaboration was aimed at creating voice-controlled games and entertainment, starting through the free multiplayer game, the 3% Challenge. This game was created as a prequel besides Netflix’s critically-acclaimed original series, 3%. In November 2019, Tencent signed a partnership agreement with Symphony, a provider of secure cloud collaboration for global markets. The partnership has been aimed at connecting the Weixin platform (known as WeChat outside mainland China) with Symphony’s community of 450,000 global market professionals. This integration enables the two major communities in connecting and conducting businesses through their favorite applications. In January 2020, Roku in partnership with Vevo for offering curated music video channels. These new channels include Vevo Classic Rock, Vevo Country, Vevo EDM, and Vevo Pop.

The global over the top (OTT) market has been segmented on the basis of

Device Types

Smart TV

Laptops

Smartphones and tablets

Gaming consoles

Set-top box

Content types

Video

Voice-over Internet Protocol (VoIP)

Games

Music Streaming

Revenue model types

Subscription

Transactional

Hybrid

Regions

Asia Pacific

Europe

North America

Middle East and Africa

Latin America