The COVID-19 pandemic is helping to provide a significant boost to the global OTT market with a new report saying one-year revenue growth could top 55% – to $161.4 billion in 2020 from $104.1 billion in 2019.
The COVID-19 outbreak has driven subscriptions to various SVOD services and increased viewership across AVOD and SVOD services. Netflix, for example, saw a Q1 increase of 15.77 million subscribers, its biggest quarter ever, and viewership numbers for entertainment services globally have seen double-digit increases.
The report, OTT Streaming Global Market Report 2020-30: COVID-19 Growth and Change from Research And Markets expects the market to stabilize by 2021 with revenues reaching $169.4 billion in 2023, a of 14% from 2021.
North America biggest in global OTT market
The report said North America was the largest region in OTT streaming market in 2019, and said streaming on 4K televisions has become a key trend.
Brightcove’s Q1 2020 Video Index, which is being released June 8, found that in North America, streaming OTT views on connected TVs, many of which are now capable of 4K, increased 277%.
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Major streaming services increasingly are seeing 4K as a differentiator, especially from pay-TV operators who are more focused on providing video in HDR than in the more bandwidth intensive 4K.
The report, meanwhile, also found that piracy and illegal streaming are potentially hindering the growth of the OTT market, with OTT players finding it increasingly difficult to monitor piracy and illegal streaming. The report posited that the illegal sale of video content in 2019 cost the industry $9.1 billion, predicting it could hit $12.5 billion by 2024.
The bottom line
Consumers increasingly are moving away from traditional subscriptions to pay-TV services and over-the-air broadcasters to OTT on-demand video subscriptions.
That’s been most obvious in the United States, where pay-TV services has their worst-ever subscriber losses in Q1. But the trend is accelerating in other global markets as consumers turn to streaming services instead because of added perks like on-demand services and ease of access.
Coming quarters are likely to see an exponential rise in the number of streaming users in a pair of massive markets, India and China. in coming years, as well as continued growth elsewhere.
Stay tuned and stay well.