Unraveling Trends, Projections, and Industry Insights from OTT Industry in 2024

Today, OTT platforms have been really revamping how people consume content. And what began earlier as a niche segment in the media landscape has today evolved into one of the most dominant forms of video streaming; surpassing even the traditional cable TV in both audience share and revenue fronts.

This noteworthy shift really signifies the growth in the demand for on-demand entertainment. Hence, it has become imperative that marketers and entrepreneurs should stay abreast of this evolution and pay close attention as to how the industry continues to proliferate in the years to come.

OTT Market Revenue Growth and Projections

As the OTT sector will continue to grow in terms of revenue and viewership, let’s delve into some of the data which showcases the growth trajectory of this promising sector. For instance, a credible forecast shows that global revenue will reach USD 316.40 billion this year while the growth will further continue at 6.3 percent CAGR from 2024 to 2029; resulting in a projected market volume of USD 429.40 billion by the end of the period. Much of this growth is being driven by OTT video advertising, which is further expected to contribute USD 191.30 billion to the market in 2024.

From a global standpoint, the United States leads the market, with expected revenues of USD 132.9 billion in 2024. However, the growing demand for OTT platforms in Asia-Pacific is notable across various countries including India, China, and Japan. These countries are expected to spearhead the market’s growth bandwagon. Particularly, the Indian market has become very lucrative and is expected to witness a great upsurge in user numbers, reaching over 4.2 billion by 2027 while showcasing a penetration rate of 53 percent.

User Growth and Engagement

As OTT platforms continue to grow, the number of users is expected to skyrocket. To consider  credible data, the global user base for OTT video services is further expected to reach 3.7 billion by 2025, with a user penetration rate of 60.8 percent in 2024; thereby showcasing a rise to 70.1 percent by 2029. Hence, OTT platforms will continue to capture larger portions of the global population as they become more accessible across populations.

Additionally, the trend of multiple subscriptions per household highlights the increasing fragmentation of content across various platforms. With this, consumers are focusing more on diversifying their streaming options so as to access a wider array of content.

Subscription Models and Advertising Revenue

One of the most important drivers of the OTT Industry today is Subscription-based video-on-demand (SVOD) services. So to look at it again from a data perspective, revenue from global SVOD services is expected to surpass USD 136 billion by the year 2027 as consumers are willing to pay for ad-free, high-quality content available on demand. Adding to this, subscription models, advertising-based video-on-demand (AVOD) and free ad-supported streaming television (FAST) services are gaining significant upward traction.

Adding to this, the global AVOD revenues for TV and movies are expected to reach USD 69 billion by 2029, while FAST services will generate USD 9.06 billion in revenue by 2024. So to say, these ad-supported models can offer the much needed alternative to subscription services; hence providing free content to users while generating revenue through targeted advertisements at the same time.

Regional and Mobile Market Dynamics

Now, let’s look at the market from the Asia-Pacific lens. This promising region is expected to see an increase in revenue by 62 percent and reach USD 52 billion by 2027. Furthermore, mobile streaming is playing a pivotal role in driving the OTT industry with Android holding a 69.94 percent share of the global mobile operating system market. This is further followed by iOS which stands at 29.32 percent. 

With this, it is clear that mobile devices have become the basic device for people to access OTT services across many regions. Additionally, the prevalence of affordable smartphones and expanding internet access in developing countries is further expected to steer the adoption of mobile OTT services, creating more opportunities for content providers and advertisers alike.

The Future Outlook

Despite the growing dominance of OTT platforms today, traditional TV advertising will nonetheless still continue to maintain a significant share of the market in the near future. For instance, Insider Intelligence reported that television ad spend will reach about USD 60.56 billion in 2024, while OTT and streaming platforms will account for the remaining third of combined TV and streaming ad expenditures. This indicates that, although OTT platforms are rapidly gaining ground, they are yet to completely replace traditional TV advertising.

However, connected TV (CTV) ad spend will continue to rise as the projected future shows that it will reach USD 40.90 billion by 2027. Hence, this growth clearly reflects the increasing popularity of smart TVs and connected devices which will allow users to stream OTT content directly on their televisions; thereby bridging the gap between traditional TV and streaming services.

Conclusion

So if we have to conclude, the evolution of OTT industry has been greatly reshaping the global media landscape and how content used to get consumed by viewers. And with revenue projections increasing at an unprecedented rate, coupled with the increase in user numbers, and evolution of advertising models, OTT platforms are becoming the primary means of video consumption across the globe.

Also to note, as more regions adopt streaming services and mobile platforms become increasingly integrated into everyday life, the OTT market will continue to expand, going forward. Hence, marketers, entrepreneurs, and content creators must stay abreast of these trends, so as to capitalize on the vast opportunities presented by this dynamic and ever-growing industry.