PUBLISHER: DataM Intelligence | PRODUCT CODE: 1347955
PUBLISHER: DataM Intelligence | PRODUCT CODE: 1347955
Global OTT Devices and Services Market reached US$ 190.5 billion in 2022 and is expected to reach US$ 482.4 billion by 2030, growing with a CAGR of 24.7% during the forecast period 2023-2030.
Growing high-speed internet connectivity across the country particularly broadband connection and 4G/5G networks has seamless streaming and consumption of OTT content on various devices. The widespread adoption of tablets and smartphones provides easy access to OTT content and allows users to watch videos and movies from any place with stable internet connectivity.
In January 2021, Netflix had the highest share of service that is 35.1% among other top five streaming services. The easy availability of smart TVs and various connected devices such as set-top boxes, media players and gaming windows has made it convenient for users to access OTT services directly from their television screens. OTT platforms offer a wider range of content that includes movies original series and TV shows.
Asia-Pacific is among the growing regions in the global OTT devices and services market covering more than 1/3rd of the market and the rapid increase in internet penetration, with a large population gaining access to high-speed internet and this widespread connectivity enables more people to engage with OTT devices and content. The prevalence of internet connectivity significantly rises the popularity of OTT devices and platforms.
Partnerships between OTT platforms and content providers enable a wider range of content to be offered to viewers. By aggregating content from multiple sources platforms can cater to diverse audience preferences and increase user engagement. Collaborations between OTT providers and device manufacturers or telecom operators can extend the reach of the services to new markets.
For instance, on 15 December 2023, TO THE NEW, a digital transformation and product engineering service provider, has entered into a partnership with IL Globo TV, a collaboration aimed at leveraging TO THE NEW's expertise in OTT services and digital solutions to design and develop IL Globo TV's OTT services for global audiences. Through this collaboration, TO THE NEW will utilize its technical capabilities and innovation ecosystem to create IL Globo TV's OTT platform.
Technology advancement enables the delivery of content in high resolution like 4K and 8K which enhances the visual experience for users. It also enables seamless access to various OTT content from various devices such as smart TVs and smartphones. Cloud solutions reduce the need for physical hardware and maintenance costs, making it more cost-effective for both startups and established players.
For instance, On 8 August 2023, MediaKind, a video technology specialist, has unveiled MK/IO, a complete streaming solution built on Microsoft Azure. MK/IO aims to enhance the video streaming experience by combining video quality, high reliability and scalability. The solution offers video-on-demand (VOD) and live streaming, encoding and packaging services for both files and live video streams.
The rising adoption of digital platforms significantly increases the OTT devices and service industry. The increasing population and usage of digital platforms for consuming content boost the market. Digital platforms offer convenience by allowing users to access content from anywhere at any time and on multiple devices like smartphones, tablets and smart TVs. As these platforms allow users to select their own plans for watching content.
For instance, on 26 December 2022, GTPL Hathway Limited, a prominent Digital Cable TV platform and Broadband Service provider in India, introduced "GTPL Genie + ," an innovative Over-The-Top app aggregation product. The GTPL Genie + platform aggregates a selection of OTT apps, enabling subscribers to access content on various devices such as Android Set-Top-Boxes, mobile devices, laptops, tablets and smart TVs, regardless of their broadband connection.
OTT services require a stable and high-speed internet connection for seamless streaming. Slow or unreliable internet connections can result in buffering, poor video quality and interruptions. Streaming video content consumes a large amount of data, which lead to high data usage for users with limited data plans. Bandwidth constraints can cause multiple users on the same network to experience slowdowns or degradation in streaming quality.
Some content on OTT platforms may be subject to regional licensing agreements which leads to geographic restrictions on access. Consumers in specific geographic regions may not be able to access specific shows, movies or live events available in other regions. As the amount of content available on OTT platforms increases, users may face challenges in discovering new and relevant content. Overreliance on algorithms for content recommendations may lead to limited exposure to diverse content.
The global OTT devices and services market is segmented based on component, streaming devices, monetization model, end-user and region.
The boundaries between traditional media and gaming are reducing day by day, with many users enjoying both video content and games. OTT platforms recognize this trend and aim to provide a comprehensive entertainment experience that includes both streaming video content and interactive gaming. Game streaming on OTT platforms can offer cross-platform accessibility, allowing users to play games on various devices, such as TVs, computers, smartphones and tablets, this flexibility enhances user engagement and convenience.
For instance, on 16 August 2023, Netflix has been progressively integrating gaming into its platform, initially introducing mobile games for its members. The company has initiated game testing for TVs and PCs, coinciding with the launch of their Netflix Game Controller app. Netflix is introducing gaming to TVs on specific devices such as Amazon Fire TV and Chromecast with Google TV, this strategic move aims to enhance the accessibility of their cloud gaming concept.
Initially available on Android phones and iPhones, Netflix is now broadening its reach to encompass TVs. To play Netflix games on a TV, users must download the Netflix Game Controller app from the Google Play Store or Apple App Store.
North America is among the largest regions in the global OTT devices and services market covering more than 1/3rd of the market and the region has a rise in live video streaming. Also, consumers in North America have a wide range of content that can be accessed from OTT platforms. The region has a well-developed technology infrastructure and partnerships boost the market.
For instance, on 22 August 2023, Viaplay and Roku had a multi-year partnership offering Viaplay streaming services to Roku devices in U.S., Canada and UK. As these partnerships allow users in these countries to directly subscribe to Viaplay local content which is offered by Roku. In U.S. and Canada have 15,000 hours for acclaimed series and films. The partnership aims to expand its service to a broader audience and it also provides a convenient user platform.
The major global players in the market include: Panasonic, NXP Semiconductor, Renesas Electronics, Blackberry, Visteon Corporation, Netflix,Inc., Amazon, The Walt Disney Company, Tencent Holdings Ltd and Roku Inc.
With people staying at their home due to lockdowns and restrictions, there was a substantial increase in streaming viewership. People turned to OTT platforms for entertainment, leading to higher demand for streaming services and content. As adoption of remote work and online education became the norm, there was a rise in the use of OTT services for professional development, training and online learning.
According to the paper published in research gate, The COVID-19 pandemic led to a significant surge in the subscription rates of Over-The-Top platforms, particularly in the film industry and with the suspension of film theaters and shooting activities, people sought alternative ways to enjoy movies from the comfort of their homes, this resulted in a rapid increase in subscriptions to various OTT platforms, as viewers turned to these services for their entertainment needs.
The pandemic caused disruptions in content production, leading to delays in the release of new shows and movies and this impacted the availability of fresh content on OTT platforms. The surge in streaming led to increased internet traffic and potential strain on networks. Some regions experienced internet slowdowns and buffering issues as a result.
AI algorithms analyze viewer preferences, watching history and behavior to recommend relevant live streams and on-demand content, this enhances user engagement by tailoring content to individual preferences. AI has a market basket analysis algorithm in that works on the browsing history of users and recommends channels according to that. AI-powered tools automatically tag and categorize live streams based on their content, making it easier for viewers to discover and search for specific types of streams.
AI-driven voice recognition technology enables users to search for content using voice commands and control playback through voice interactions and this feature enhances user convenience and accessibility. AI algorithms monitor network conditions in real-time and adjust streaming quality based on factors like bandwidth and device capabilities, this ensures smooth playback without interruptions.
For instance, on 16 August 2023, Sabio Holdings Inc., a provider of connected TV and over-the-top advertising platforms, introduced a new AI feature within its App Science Insights analytics dashboard and this feature utilizes Natural Language Processing to automate the analysis of metrics within the dashboard, making it easier for media agencies and brands to interpret their data.
In regions directly affected by the conflict, there could be disruptions to internet infrastructure, which could lead to reduced accessibility to OTT platforms. However, since OTT services are usually accessible over the Internet, these disruptions might have a limited impact on users outside the conflict zones. OTT services rely on content delivery networks to ensure smooth streaming. Any disruptions or congestion in the internet infrastructure could result in buffering and lower-quality streaming experiences for users.
During times of conflict and uncertainty, people might turn to entertainment platforms, including OTT services, for distraction and relaxation and this could potentially lead to increased demand for OTT content. In some cases, governments involved in conflicts might increase content regulation or censorship, including online content, this could impact the availability of certain content on OTT platforms.
The global OTT devices and services market report would provide approximately 69 tables, 69 figures and 203 pages.
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