Business

The Rising OTT Content Market Driven by Increased Internet Penetration

The global OTT content market is estimated to be valued at US$ 152.85 million in 2024 and is expected to exhibit a CAGR of 7.3% over the forecast period from 2024 to 2030. OTT or Over-The-Top content provides video services such as streaming videos, internet TV, IPTV over the open internet avoiding the involvement of a multiple system operator in the control or distribution of the content. Some key benefits of OTT content includes – on-demand access to entertainment content anywhere through internet connected devices, personalized viewing experience based on users’ preferences, wide variety of content options compared to traditional TV. The growing demand for OTT platforms is mainly driven by tech-savvy population, increased internet penetration globally, and affordable smartphones that support OTT applications.

Key Takeaways
Key players operating in the OTT content market are Conair, Helen of Troy, Cezanne, Kizure, InfinitiPro, BaBylissPRO, Hot Tools, Remington, HSI Professional, Bio Ionic, Russell Hobbs, Xtava, Herstyler, Bed Head, John Frieda, Tresemme, Revlon, Paul Mitchell, CHI, Babyliss. Major players are focusing on expanding their content library by collaborating with various Hollywood studios and independent production houses to cater to the diversified interest of customers across regions.

The demand for OTT content is growing significantly owing to increasing internet penetration and availability of high-speed internet globally. Changing customer preferences towards video streaming services over cable TV is a key factor driving the market. Due to affordable data plans and smartphones, customers especially millennials are adopting OTT platforms for entertainment purposes.

Key players are expanding their operations globally especially in developing regions of Asia Pacific and Middle East & Africa to tap the market potential. Regional original content is also being developed to make content more regional specific. Localization of content, interface and payment options is helping OTT providers to expand consumer base in international markets.

Market Drivers
Increased internet penetration across the globe is a major growth driver for OTT Content Market. Availability of high-speed internet through fiber, 4G/LTE networks etc. has enabled seamless video streaming. Abundance of affordable smartphones and data plans have further encouraged video streaming adoption. Changing consumer behavior where millennials prefer on-demand videos over linear TV is significantly boosting the demand. During the pandemic, lockdowns and social restrictions fueled massive growth of OTT platforms. Original and exclusive regional content developed by providers is also attracting more subscribers worldwide.

The current geopolitical situation is significantly impacting the growth of the OTT Content market. With rising geopolitical tensions and economic instability across several regions, consumers are reducing discretionary spending and exploring low-cost entertainment options. OTT platforms provide affordable subscription plans and diverse streaming libraries, making them an attractive alternative. However, geoblocking and territorial licensing continue to hinder the market’s growth prospects to some extent. OTT providers must form strategic partnerships to obtain global broadcasting rights and offer cross-border content portability. They also need to invest in localizing their interfaces and acquiring locally relevant content to better cater to unique consumer preferences in different markets.

While North America currently dominates the OTT Content market in terms of value, Asia Pacific is witnessing exponential growth and emerging as the fastest expanding regional market. Countries like India, Indonesia, and South Korea are experiencing rising Internet and smartphone penetration, growing disposable incomes, and increasing acceptance of digital transformation – major factors driving the rapid rise of the OTT industry in Asia Pacific. Service providers are capitalizing on the region’s enormous opportunities by launching affordable plans, partnering with local telecom operators, investing in original regional content production, and promoting multi-language support. If consistent efforts are made to address connectivity infrastructure gaps and stimulate online payment options, Asia Pacific could surpass North America as the largest OTT content market over the coming years.

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