OTT is no longer an experiment or an internet geek’s fancy. Today, television is increasingly delivered over the internet and new media companies are joining the race towards market dominance. Netflix has been around for so long you might think its market position is unflinching. But it’s still not too late for new players to try to establish their market presence.
The revenue generated by over the top (OTT) media is expected to reach 158.84 billion dollars by 2024. This is more than twice the 67.8 billion generated in 2018. In general, OTT has grown massively over the eight years, with revenues growing exponentially from 6.1 billion U.S. dollars in 2010 to over ten times that amount in 2018. Today, the OTT industry is booming as the technology has become a dominant channel for video consumption alongside PayTV and traditional broadcast services. With a 28% Year-on-Year growth in total time spent streaming on OTT, the media revenue is expected to reach 158.84 billion dollars by 2024, more than double the 67.8 bn generated in 2018 (source: Statista). The US SVOD market is one of the biggest in the world. It is expected there will be a dozen OTT platforms with more than 5 million paying subscribers by the year 2025.
With the outbreak of COVID-19 various lockdown policies around the world, OTT has become one of the few remaining – but much-needed – sources of entertainment these days. This explains its explosive growth in the recent years – the effect is very likely compounded by the cord-cutting trends and a gradual switch to online-only media consumption. For advertisers, OTT services will soon be the only way to reach some TV audiences which don’t use regular TV, cable or IPTV. Because OTT is still a relatively new phenomenon, it still offers great opportunities for media companies, content providers and advertisers.
Lots of companies are entering the OTT space, opening new possibilities for their consumers and advertisers. If you’re considering launching an OTT platform, drop us a line – in Interactvty we’re always ready to help.
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