The global OTT market is anticipated to grow at a CAGR of 19.1% to surpass US$ 438.5 billion by 2026.
With technology developing at the rate of knots, we believe the growth figures could be even higher than this. In this piece, we explain the technology trends that are going to fuel the growth of OTT globally.
1. Smartphones and data getting affordable
With the population of the world growing, so are the number of smartphone users. Worldwide, we are seeing a trend of smartphones and data getting more and more affordable, which is leading to more innovation in this space. People are spending more time on their smartphones, with most of them being used to consume video content. According to Social Media Today, 81% of businesses are using video for content marketing. When we compare this percentage to last year’s video marketing statistics, that’s a 63% relative increase.
With staggering numbers like these, no wonder more brands are creating their own OTT channels to engage with their consumers.
2. 5G is here
The next-generation cellular network which is expected to become the norm in urban areas globally will provide faster and more reliable internet speeds which open up a world of opportunities for players in the video streaming space. With latency reducing further, we can expect 5G to give sports and other live events the boost it requires.
5G’s super quick streaming will allow video consumption in super quality too and expect more 4K streaming solutions because of this.
3. Online parties
Technology was a saviour for many during the Covid-19 pandemic. As people were confined to their houses, content on OTT kept them busy. Then, over time, OTT players like Disney+ (GroupWatch) and Netflix (Teleparty) used technology to allow people to watch movies (or other content) together on a video chat while streaming in sync. This has proved to be a success and is being looked at as an option by more OTT providers globally.
4. User experience
One major aspect of the growth of any platform or service is the user experience. And with tech advancements being made rapidly, we are seeing players such as Netflix taking the viewer experience one notch higher. The whole experience of content recommendation, the ‘continue watching’ option which allows users to restart the video from where they left off, among others is fuelling the growth of the OTT platform.
5. Subscription bundles
With several tech players within the OTT space, some consumers believe that there are too many options globally. So, we’re seeing players like Disney+ using technology to offer bundled packs with ESPN (in the US) to consumers. This offers them content from more than just one OTT provider.
6. Emergence of more options to stream on
OTT is usually linked to the smartphone or the smart TV. But with more options like the Amazon Fire Stick, Apple TV, the Sony Playstation etc emerging, consumers can be connected with your OTT platform across devices. This also means that your content needs to be available across platforms. This might sound daunting but don’t worry, team Enveu is here to help.
While the OTT space is quickly getting crowded, all experts point to the fact that the medium will continue to grow.
We at Enveu are here to help those already in the market to grab a bigger portion of the pie. For those who aren’t a part of this lucrative business, no worries too. Get in touch with us and we’ll make sure your content gets the dollars it deserves!