The global over-the-top video market was valued at USD 23.4 billion in 2017 and is anticipated to grow at a CAGR of 16.9% during the forecast period.
Over-the-top (OTT) video includes the delivery of visual communication media using the internet. OTT services deliver video content without requiring users to subscribe to a traditional cable or satellite pay-TV service. OTT video services are less expensive for the consumers, and are more efficient in their widespread distribution. OTT enables the users to access entertainment and infotainment media like videos and films while offering downloading options as well.
The major driver for over-the-top video market is the continuous implementation of faster broadband services. The growing adoption of device-based computing, and increasing penetration of broadband infrastructure drive the growth of the over-the-top video market. The increasing popularity of interconnected devices and mobile subscriptions has led to a positive influence on the OTT market. Moreover, high content quality, increased options for viewing, and affordable pricing are some other factors propelling market growth.
The growing media and entertainment industry, especially in Asia-Pacific region, further boosts the market growth. The growing disposable incomes, and improving living standards also support market growth. Other factors driving the market include growing demand for online content, technological advancement, and increasing purchasing power of consumers. However, factors such as threat of piracy of content, low speed and bandwidth in emerging countries, and lesser viewing options for offline content restrict the over-the-top video market growth to a certain extent. Growing demand from emerging economies, and increasing consumer awareness are factors expected to provide numerous growth opportunities in the coming years.
The global over-the-top video market is segmented on the basis of devices, revenue model, deployment model, and region. On the basis of devices, the market is segmented into mobile devices, laptops and desktops, set top box, and gaming consoles.
The revenue model segment is divided into SVOD, TVOD, AVOD, and others. The AVOD segment accounted for the largest market share in the global OTT video market in 2017.
Based on deployment model, the market is segmented into on-premise, and cloud-based. The on-premise segment dominated the global market in 2017. However, the cloud-based segment is expected to exhibit higher growth during the forecast period.
Regionally, the over-the-top video market is distributed across North America, Europe, Asia-Pacific, Latin America, and MEA. North America is further segmented into U.S., Canada, and Mexico. Europe is divided into Germany, UK, Italy, France, and Rest of Europe. Asia-Pacific is bifurcated into China, India, Japan, and Rest of Asia-Pacific. North America accounted for the largest share in the Global OTT Video market in 2017.
The leading players in the over-the-top video market include Microsoft Corporation, Yahoo Inc., Amazon.com, Google Inc., Netflix Inc., Roku, Inc., Hulu, Apple, Inc., Akamai Technologies, Facebook, Inc., Limelight Networks, Inc., and Tencent Holdings Ltd. among others. These leading players in the market are introducing innovative products to cater to the consumers. Global players are entering new markets in developing regions to expand their customer base and strengthen market presence.