Have you ever noticed the amount of time you spend on Netflix, Hulu, or Disney + is more than what you think? Research shows the average US household spent 122 hours on Connected TV (CTV) per month, with Netflix having an 82% audience overlap with the other streaming services.
The advance in technology has propelled the adoption of streaming services, which has become a prominent entertainment. Over-the-top (OTT) refers to any content that is directly delivered to viewers through streaming video service over the Internet instead of traditional TV cables. The market size of the OTT industry is expected to continue to grow tremendously.
Current OTT Market Value and Forecast in North American
According to Grandview Research, the global video streaming market size was valued at USD 59.14 billion in 2021. It is expected to expand at a compound annual growth rate (CAGR) of 21.3% from 2022 to 2030. In particular, the United States is one of the largest OTT markets in the world.
The country not only has the most mature OTT market but is also home to world-leading video-on-demand services. It is estimated that the OTT market in North America will reach $94 billion by 2026, according to Digital TV Europe.
Prior to the entrance of HBO Max, the top 5 biggest streaming services, Netflix, Youtube, Amazon Prime, Hulu & Disney+, accounted for over 80% of the market share. With the new player, HBO Max entering the competition of streaming platforms in May 2020, the increase in free-to-view ad-supported video on demand will drive more revenue to the industry in the future. The growing availability of unlimited wireless data plans and public Wi-Fi has also increased the number of OTT service providers.
Impact from COVID-19
In 2020, the COVID-19 pandemic has propelled the speed of rising viewership on streaming platforms. Since millions of households had to stay at home 24/7, online video streaming services became one of the popular forms of entertainment.
Study shows there was a 10% increase in total viewership during the lockdown in 2020. Platforms such as Netflix, Amazon Prime Video, and Disney+ obtained a sudden remarkable number of new users.
Demand for digital devices also increased during COVID as the need of communicating online surged. Post COVID-19, the market size of OTT is estimated to grow from $171.36 billion to $1,039 billion by 2027. The global pandemic has brought a positive impact on the OTT market.
Multiple Streaming Platforms
The rising adoption of digital devices across various industries also resulted in the inclination towards multiple streaming services. Over 31% of the market share was accounted for smartphones and tablets, the largest revenue share in using the streaming services in 2021.
In addition, the growing popularity of social media platforms fuels the adoption of smartphones, which democratize the devices of streaming platforms. Moreover, the advent of affordable smartphones has democratized online gaming and brought more smartphone users to the world of streaming devices.
The adoption of smart TV is also expected to grow significantly because the viewing experience is better than smartphones and tablets. It also offers a comprehensive option of traditional TV channels. With reliable internet service, people can access all kinds of streaming platforms at anywhere any time. The growth potential of the OTT market is significant.
Conclusion
In a nutshell, the emergence of streaming platforms has pivoted the traditional TV industry. As the number of users in streaming services remarkably increases, the use of streaming is no longer a trend, it’s our day-to-day life.
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iTalk TV Platforms are the largest licensed Chinese-language television and streaming services in North America. iTalk TV Platforms are boutique ad-supported video-on-demand (AVOD) platforms with options of free and subscription tiers offering various Chinese streaming content through their Set-Top-Box platform and digital platforms on the web and mobile app versions. By reaching 2 million users, the services entertain audiences with a curated collection of movies, TV shows, original content, and in addition to 30+ live streaming channels.
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