The overall size of the OTT industry was pegged at more than US$ 100 billion at the end of 2020 and will grow at a CAGR of 13.87% to reach more than US$ 220 billion by 2026.
For anyone looking at why the OTT industry is important, the above stat is enough. If you’re not convinced, we have more reasons in line for you. Read on…
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Growth of the internet
According to a report published by WARC (World Advertising Research Center), over 1.3 billion people are anticipated to access the internet via smartphones and PCs by 2025. The growth of mobile-based internet users is also attributed to the rising adoption of 5G networks by the operators due to the consumption of content and related services.
This just means that there’s more opportunity for your OTT app to be consumed.
Cable television’s decline
While the U.S. cable television industry still boasts around 77 million households as customers, eMarketer estimates that figure will be close to 63 million by the end of 2024.
Content consumption hasn’t decreased, which means cable TV’s loss is the internet’s gain, and regular channels’ loss will be OTT’s gain.
Growth of devices
According to a recent article published by eMarketer, by the end of 2023, The total number of pay TV households will drop to 65.1 million, a 4.8% decrease from 2022. While cable TV is declining in numbers, smartphones are seeing sharp growth.
In 2022, the number of smartphone users in the world today is 6.648 Billion, which translates to 83.72% of the world’s population owning a smartphone. In total, the number of people that own a smart and feature phone is 7.26 Billion, making up 91.54% of the world’s population.
With sales of each of these devices increasing, there’s a great growth potential for OTT.
In the USA, 64 million homes are already accustomed to OTT with an average of 86 hours of consumption.
The fastest-growing region for OTT consumption is Asia Pacific with India being the fastest growing OTT country according to a PwC report.
With the population size available across APAC yet to access OTT, there’s a huge target audience to tap into, which means you’re not too late to join the OTT wagon.
Growth of OTT apps
After many years without major competition, Netflix has its work cut out. The global OTT market size was valued at $121.61 billion in 2019, and is projected to reach $1,039.03 billion by 2027, growing at a CAGR of 29.4% from 2020 to 2027.
The likes of Disney, HBO, and NBC have released Disney+, HBO Go, and Peacock Premium, respectively. In addition, tech players are launching their platforms too, as seen with Apple TV, Amazon Prime Video, etc.
This means the market is still to settle, leaving space for more broadcasters/content creators to enter.
User experience is the key
This is the most important point for one to keep in mind when creating or running an OTT app. User experience (UX) has contributed greatly to the success of platforms as viewers prefer using streaming services that are easy to navigate.
A PwC survey on viewer attitudes to content discovery reports that 55% of consumers find themselves looking for something new to watch every week and 62% struggle to find something to watch. The reason Netflix has dominated for years is that it is easy to navigate, gives a great customised library for each viewer and its interface remains top-notch.
The emergence of more players in the OTT hosting industry
Players such as Enveu are in the market which makes it extremely easy, affordable and stress-free for content creators and broadcasters to enter the OTT market.
Sold on OTT and want to start your own business in the space? We at Enveu can help.
Not convinced yet? Speak with us, the experts in the space who could guide you and solve your doubts about the medium.
Either way, let’s talk!