February 22, 2024

OTT Content Market Driven by Increasing Smartphone and Internet Penetration

 OTT includes subscription video on demand services such as Netflix and Hulu that allow users to view a wide variety of films and TV shows on an à la carte basis. It also includes ad-supported content from sources like YouTube and streaming broadcast TV channels. The rising availability of affordable high-speed internet connectivity and proliferation of smart devices has boosted the adoption of OTT services among consumers seeking alternative content sources. The global OTT content market allows users to access multimedia entertainment of their choice on any internet-enabled device from personal computers to smartphones to smart TVs.

The global OTT Content Market is estimated to be valued at US$ 132.68 billion in 2024 and is expected to exhibit a CAGR of 7.3% over the forecast period 2024-2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The increasing availability of variety of OTT platforms specializing in different genres like kids programs, local language shows etc and the trend of video streaming in vernacular languages are some of the key trends witnessed in the OTT content market. OTT service providers are investing heavily in developing original and exclusive content in local languages to target the next billion users coming online in non-English speaking markets like India, Brazil etc where broadband penetration is increasing rapidly. This localization strategy helps OTT players differentiate themselves from competitors and better engage local audience.

Porter’s Analysis

Threat of new entrants: The threat of new entrants into the OTT content market is low as it requires massive investments and scale to produce and deliver quality content across different devices and territories.

Bargaining power of buyers: The bargaining power of buyers is high in this market as consumers have a wide variety of OTT platforms and content choices available to them. Buyers can easily switch between platforms based on the content and pricing offered.

Bargaining power of suppliers: The bargaining power of content suppliers is also high given the scarcity of premium quality content. Major production houses and studios can negotiate favorable deals with OTT players.

Threat of new substitutes: The threat of substitutes is moderate as other forms of entertainment like movies, gaming, social media continue to co-exist with OTT platforms. However, technological advances can introduce new substitutes over time.

Competitive rivalry: The competitive rivalry in the market is intense with players competing on the basis of exclusive content, UI/UX experience, platform features, subscriptions etc. to attract and retain users.

Key Takeaways

The Global OTT Content Market Size is expected to witness high growth over the forecast period driven by increasing digitization and proliferation of smart devices. Rising smartphone and internet penetration around the world is expanding the potential audience base for OTT platforms. The global OTT Content Market is estimated to be valued at US$ 132.68 billion in 2024 and is expected to exhibit a CAGR of 7.3% over the forecast period 2024-2030.

Regional analysis: Asia Pacific region currently holds the largest share of the global OTT content market and is expected to maintain its dominance during the forecast period supported by increasing disposable incomes, dynamic uptake of smart devices and availability of low-cost data plans in emerging countries.

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.

Key players are investing aggressively in creating original premium content and implementing strategies like bundling subscriptions, regional expansion, partnerships etc. to strengthen their market position.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it