The Rise of On-Demand Entertainment Drives Growth in the OTT Content Market
Over-the-top (OTT) content refers to the delivery of film and television content via the internet without requiring users to subscribe to traditional cable or satellite pay-TV services. OTT services allow consumers to watch a variety of TV shows and movies across multiple devices including smart TVs, desktops, tablets, and smartphones through streaming media players, set-top boxes, and mobile apps provided by various OTT media service operators. The widespread adoption of smartphones, affordable data plans, and growth of internet users has transformed consumer viewing habits towards on-demand and binge-watching of content. Today's audiences prefer the flexibility of accessing a wide range of entertainment choices from various OTT platforms based on their schedule and interests without being tied down to linear TV broadcasts and fixed channel lineups.
The global OTT content market is estimated to be valued at US$ 132.68 Bn in 2024 and is expected to exhibit a CAGR of 7.3% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends: One of the key trends driving growth in the OTT content
market is the increasing number of subscribers for premium video-on-demand
(VOD) services. Premium VOD services provide access to feature films, TV shows,
documentaries and short-form content in a linear broadcast format or on-demand
basis through monthly subscription plans starting from USD 4-15. The
availability of exclusive and original content series such as Stranger Things,
Mirzapur, Money Heist etc through over-the-top platforms has fueled their mass
appeal and subscriber base growth. It is estimated that VOD revenues will
account for over 50% of the global OTT content market by 2030.
Porter’s
Analysis
Threat of
new entrants: The OTT content market has moderate barriers for new entrants due
to the high capital required for content development and distribution. The
established players have strong brand loyalty and network benefits creating
further entry barriers.
Bargaining power of buyers: Buyers have moderate bargaining power due to the
availability of substitutes like traditional TV and theaters. Switching costs
are low as customers can easily change between different OTT platforms.
Bargaining power of suppliers: Content creators and producers have significant
bargaining power due to the specialized skills required for developing
high-quality content. Suppliers can negotiate better deals and switch between
platforms.
Threat of new substitutes: The threat is moderate to high as new digital
technologies like virtual reality provide opportunities for immersive content
viewing experiences. Traditional TV and theaters also pose substitution threats
if attractive content is available.
Competitive rivalry: The competition in the market is high due to the presence
of tech giants and independent players offering diverse OTT services. Players
compete on factors like content, pricing models, and user experience.
Key Takeaways
The Global
OTT Content Market Size is expected to witness high growth over the
forecast period driven by increasing penetration of smart devices and
high-speed internet. Emerging markets in Asia Pacific are estimated to see the
fastest growth in subscription and revenues. The global OTT content market is
estimated to be valued at US$ 132.68 Bn in 2024 and is expected to exhibit a
CAGR of 7.3% over the forecast period 2024 to 2030.
Regional analysis: The Asia Pacific
region is projected to grow at the highest CAGR during the forecast period due
to rising disposable incomes, growth of SVOD platforms, and increasing internet
and smartphone users in densely populated countries like India and China. North
America currently holds the largest share supported by high broadband speeds
and increasing preference for streaming services over cable TV.
Key players: Key players operating
in the OTT content market are Conair, Helen of Troy, Cezanne, Kizure,
InfinitiPro, BaBylissPRO, Hot Tools, Remington, HSI Professional, Bio Ionic,
Russell Hobbs, Xtava, Herstyler, Bed Head, John Frieda, Tresemme, Revlon, Paul
Mitchell, CHI, Babyliss. These players compete on the basis of creative
original content, technological innovations, pricing strategies, and
partnerships.
Get more insights on this topic:
https://www.dailyprbulletin.com/ott-content-market-size-market-share-analysis/
Comments
Post a Comment