According to a new report Over the Top (OTT) Services Market, published by KBV Research, The Over the Top (OTT) Services Market size is expected to reach $179.9 billion by 2025, rising at a market growth of 14.3% CAGR during the forecast period. An increase in OTT demand in developed countries, rise in SVoD services in emerging markets, an increase in content diversity, an increase in demand for live streaming channels, the development of new OTT markets and new developments in OTT technology are key factors in boosting market growth. Nonetheless, the lack of data network infrastructure and latency problems is expected to impede OTT market growth.
On the basis of device type, the smartphones segment was dominant in the overall OTT market in 2018 and is projected to sustain its dominant position over the forecast period. This dominant position can be associated with the increased adoption of smartphones to stream OTT services and an escalating market for larger screen smartphones in the developing economies. The Desktops & Laptops market is anticipated to grow at a CAGR of 14.9% during (2019-2025). Additionally, The IP TV’s & Consoles market would witness CAGR of 15.7% during (2019-2025).
The media & entertainment industry captured a stronger market position in 2018 and is projected to remain dominant over the forecast period due to an increase in the number of digital video users. This is projected to increase the demand for OTT services in the media & entertainment industry. The Gaming market is exhibiting a market growth rate of 14.5% during (2019-2025). Additionally, The Education & Learning market is expected to witness CAGR of 15.1% during (2019-2025).
The video content segment witnessed the highest growth rate in 2018 and is projected to continue this trend over the forecast period due to the rapid roll-out of new technologies contributing to video consumption.
As North America is the most developed region, it hosts to large verticals that are capable of investing in robust and specialized IT infrastructure for rising data traffic, opening up new opportunities for OTT solutions. The Europe market is estimated to witness a CAGR of 13.5% during (2019-2025). Additionally, The Asia Pacific market is poised to grow at a CAGR of 16.4% during (2019-2025).
Structural Insights: https://www.kbvresearch.com/over-the-top-services-market/
The market research report has exhaustive quantitative insights providing a clear picture of the market potential in various segments across the globe with country wise analysis in each discussed region. The key impacting factors of the market have been discussed in the report with the elaborated company profiles of Twitter, Inc., Microsoft Corporation, Google, Inc., Amazon.com, Inc., Apple, Inc., Facebook, Inc., Netflix, Inc., The Walt Disney Company (Hulu LLC), Tencent Holdings Ltd., and Roku, Inc.
Recent Strategies Deployed in Over the Top (OTT) Services Market
» Partnerships, Collaborations, and Agreements:
• Jna-2020: Roku in partnership with Vevo for offering curated music video channels. These new channels include Vevo Classic Rock, Vevo Country, Vevo EDM, and Vevo Pop.
• Dec-2019: Google Nest partnered with Booking.com, a leader in online travel making it easier for everyone to experience the world. Under the partnership, the companies aim towards developing a connected and seamless trip experience for hosts and travelers.
• Nov-2019: Amazon partnered with RedBus, an online bus ticket booking platform and launched a private bus ticket booking service. Amazon customers’ have the access to RedBus features such as live tracking of buses, bus service ratings by passengers, bus number and contact information of staff before departure.
• Nov-2019: Amazon came into partnership with BookMyShow, an online ticket booking platform. Through this partnership, Amazon customers have access to buy movie tickets from its own app. This partnership was aimed at boosting e-commerce firm, Amazon’s effort in becoming a one-stop-shop for all the online consumer transactions.
• Nov-2019: Apple came into partnership with PlayNetwork, a provider of in-store music and entertainment. This partnership is aimed at playing music at retail stores. The businesses can sign up to Apple Music for business plans and can get the licensed music to play in their retail locations with Apple providing human-curated playlists.
• Nov-2019: Tencent signed a partnership agreement with Symphony, a provider of secure cloud collaboration for markets. The partnership has been aimed at connecting the Weixin platform (known as WeChat outside mainland China) with Symphony’s community of 450,000 market professionals. This integration enables the two major communities in connecting and conducting businesses through their favorite applications.
• Oct-2019: Netflix collaborated with Doppio Games, a conversational game company. The collaboration was aimed at creating voice-controlled games and entertainment, starting through the free multiplayer game, the 3% Challenge. This game was created as a prequel besides Netflix’s critically-acclaimed original series, 3%.
• Sep-2019: Netflix announced its partnership with Canal Plus Group, a French Film, and Television studio company. In the partnership, the streaming services were included in Canal Plus Bundles. It gave the subscribers with Canal Plus’s Ciné Séries package access to Netflix service as well as a premium channel, under one subscription.
• Sep-2019: Microsoft announced its collaboration with SK Telecom, a wireless telecommunications operator. The collaboration was aimed at delivering 5G cloud-based gaming in Korea. Microsoft’s game streaming technology, Project xCloud, enables the gamers to play the games on mobile devices while connected to the internet.
• Aug-2019: Apple partnered with Porsche to bring the Apple music streaming service to automaker’s battery-electric Taycan. The owners of Taycan would have access to Apple music through the car’s internet connection.
• Jul-2019: Tencent extended its partnership with NBA for all streaming, licensed promotion, and merchandising of NBA games and coverage in the Middle Kingdom.
• Jul-2019: Tencent in collaboration with Baidu started offering new premium VOD services in Vietnam. The users have the access to directly pay in the app to use WeTV for as little as VND 25,000 (USD 1.08) a month or iQIYI for 49,000 VND (USD 2.13) a month. WeTV has been owned by Tencent and iQIYI, by Baidu.
• May-2019: Amazon announced a partnership with ClearTrip, a flight booking platform in India. The partnership was aimed at providing its customers with access to book their flight tickets directly from their own app.
• May-2019: Microsoft teamed up with Sony to develop future cloud solutions for content streaming services and game services.
» Acquisition and Mergers:
• Dec-2019: Facebook acquired PlayGiga, a Spanish video gaming company. The acquisition helped Facebook in building its online gaming business with new missions.
• Dec-2019: Google announced the acquisition of Typhoon, an independent game developer. After the acquisition, Typhoon began operating under the Stadia Games and Entertainment business of Google. The acquisition emerged as a new step for Google for the expansion in the gaming industry.
• JuN-2019: Microsoft announced the acquisition of Double Fine, a video game developer company. The acquisition bolstered the position of the former company in the gaming industry by bringing its breakthrough technology to Microsoft’s technology.
• Sep-218: Apple completed the acquisition of Shazam, a popular music discovery app. After the acquisition, Apple made this app ad-free so that the users could enjoy the best of Shazam without interruption.
• May-2018: Texture, the digital magazine subscription service by Next Issue Media LLC has been acquired by Apple. This gave users unlimited access to their favorite titles for a one-month subscription fee.
» Product Launches and Product Expansions:
• Nov-2019: Amazon introduced an ad-supported free version of its music streaming service Amazon Music. It would be part of its prime bundle.
• Jun-2019: Netflix released new video games based on its shows, to make the efforts to turn its streaming platform into a multimedia empire. Its new games were Stranger Things 3, a title based on teen series, The Dark Crystal: Age of Resistance, a prequel series to the 1980s Jim Henson film, etc.
• Mar-2019: Google unveiled Stadia, a new online gaming platform. Through this launch, the company was aimed at entering the internet-based services segment. It is a cloud-based platform that the customers can use through simply clicking on the ‘Play Now’ button.
• Mar-2019: Apple announced the launch of Apple Arcade, the world’s first game subscription service for desktop, mobile, and the living room. Arcade features brand new, original games from Major Studios, Acclaimed Indie Developers, Ken Wong, Legendary Creators Hironobu Sakaguchi, and Will Wright.
• Oct-2018: Facebook launched Portal and Portal +, a pair of artificial-intelligence (AI) powered smart video chat devices. These devices have been designed for connecting people and making them feel virtually nearby. These devices were 10 and 12-inch in size.
• Sep-2018: Facebook unveiled an Android app for fb.gg, the one-stop destination of the company for viewers so that they can discover and follow the gaming content. This service has been limited to the Philippines only.
Over the Top (OTT) Services Market Segmentation
By Monetization Model
By Service Vertical
• Media & Entertainment
• Education & Learning
By Streaming Device
• Smartphones & Tablets
• Desktops & Laptops
• IP TV’s & Consoles
• Video on Demand
• Online Gaming
• Music Streaming
• Rest of North America
• Rest of Europe
• South Korea
• Rest of Asia Pacific
• Saudi Arabia
• South Africa
• Rest of LAMEA
• Twitter, Inc.
• Microsoft Corporation
• Google, Inc.
• Amazon.com, Inc.
• Apple, Inc.
• Facebook, Inc.
• Netflix, Inc.
• The Walt Disney Company (Hulu LLC)
• Tencent Holdings Ltd.
• Roku, Inc.