Over-the-Top (OTT) Video Market to hit 4.2 billion users with a massive 53% penetration rate by 2027
According to data presented by OnlyAccounts.io, the global over-the-top video market is expected to hit 4.2 billion users and a massive 53% penetration rate by 2027.
Over the past five years, the number of users in the over-the-top video segment has jumped by 45%, rising from 2.4 billion in 2018 to 3.5 billion in 2023. OTT has taken the video market by storm and will continue to grow in the future.
According to data presented by OnlyAccounts.io, the global over-the-top video market is expected to hit 4.2 billion users and a massive 53% penetration rate by 2027.
The number of users to jump by 700 million in four years
Over the Top (OTT) services refer to any type of video or streaming media that provides viewers access to TV shows or movies by sending the content directly through the internet. Some popular OTT providers include Netflix, HBO Max, Disney+, Hulu, and Amazon Prime Video.
Over the past five years, these media giants have spent hundreds of billions of dollars on creating new content, all in a race to grow their viewership, pushing the total number of users in the OTT video market to record highs.
According to Statista Market Insights, in 2018, around 2.4 billion people worldwide used OTT video services. In the next two years, this figure jumped to over 3 billion. The impressive user growth continued in 2021, with another 300 million people entering the market. Statista data show 2022 saw an 82 million user drop, the first one in years, but the increasing trend continued in 2023.
Overall, more than one billion people worldwide started using OTT video services between 2018 and 2023, causing the user penetration in the market to jump from 33.2% to 45.6% in this period. Statista expects the OTT video market to see five years of consecutive user growth. According to the survey, another 709 million people worldwide will start using OTT video services in the next four years, pushing the total user count to 4.2 billion worldwide.
Revenue to grow by 35% and hit almost $400B by 2027
All the largest service providers in the market, including Netflix, Amazon Prime Video, Hulu, and Disney+, saw their subscriber count double and triple in the past five years, helping total market revenue to reach record highs.
In 2023, OTT video service providers are expected to gross nearly $295bn in revenue or three times more than $98.7bn reported in 2018. Around 70% of that value will come from the United States, China, and the United Kingdom, the top three markets, where consumers continue switching away from traditional pay-TV consumption in favor of more flexible and affordable video formats.
OTT video advertising is the largest revenue stream in the market, generating $176.6bn or nearly 60% of total revenue this year. Video streaming (SVoD) follows with $107.9 in revenue this year. Statista expects global OTT video revenues to grow by another 35% in the next four years, reaching almost $400bn by 2027.
The full story and statistics can be found here: https://onlyaccounts.
