Press release
OTT Content Market
The emergence of the live streaming trend and virtual reality technology is a great opportunity for major players to develop innovative offerings in the OTT content market. An increase in the adoption of high speed broadband, along with the increasing demand for smartphones and smart televisions is contributing to the growth of the OTT content market. Players in the market are continuously upgrading their product portfolios to meet the increasing demands in the competitive global OTT content market.The presence of multiple regional and global players has resulted in market fragmentation over the years, and vendors are focusing on differentiating their content and platform offerings to retain competitive edge. The impact of government regulations is moderate and the demand for regional content is comparatively high. New players are looking to partner with telecom providers and outsource OTT content while the main strategy of distributors is to source content from the different OTT players. As viewers demand the most trending content, distributors need to buy such content from content providers, which lets the content providers have an upper hand, hence limiting the bargaining power of distributors.
According to a market research report published by Future Market Insights (FMI), the global OTT content market is expected to foresee a strong CAGR of 17.4% from 2018 to 2028. In 2017, the market was worth US$ 44,391.0 Mn and is projected to rise to a valuation of US$ 245,814.4 Mn by the end of 2028.
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Proliferating Penetration of Mobile and Other Connected Devices to Push Market Revenue in the Coming Years
Smartphones and tablets have become the first go-to devices for communication and content consumption. Additionally, with the rapid adoption of 4G services in developing countries and the First World moving towards advanced telecommunications technologies, mobile Internet diffusion is anticipated to accelerate in the coming years. Optimal pricing of 4G enabled phones has led to increasing smartphone penetration in various regional consumer markets, leading to a surge in demand for OTT content.
At present, OTT content and related services are an attractive and feasible alternative to traditional entertainment channels. Growing preference for OTT content can be attributed to expanding content libraries and affordability relative to conventional TV subscriptions. For instance, subscription video on demand (SVOD) services led by Netflix, Amazon, and Hulu, are very popular among users owing to the affordable pricing structure.
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Limited Offline Availability May Create a Roadblock to Market Growth
A disruption in the Internet connection when a user or subscriber avails VoD services generally results in the re-streaming of the video. This can lead to user dissatisfaction caused by the loss of time and data in consuming the content. The content not being available offline for download further creates a poor customer experience. These factors may lead to restrictive adoption of OTT content services.
About Technology Division at Future Market Insights
The technology team at Future Market Insights offers expert analysis, time efficient research, and strategic recommendations with an objective to provide authentic insights and accurate results to help clients worldwide. With a repertoire of over 100+ reports and 1 million+ data points, the team has been analyzing the industry lucidly in 50+ countries for over a decade. The team provides a brief analysis on key trends including competitive landscape, profit margin, and research development efforts.
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