Over the past several years, OTT platform/streaming services have seen impressive growth around the globe while showing no signs of slowing down any time soon! This led to traditional TV networks becoming worried as they started struggling to compete with the quantity and quality of the OTT platform’s original content.
The increasing numbers of viewers choose to sign up for services and use their offers over the internet while ditching a cable subscription. With this in mind, let’s take a look at some of the most important figures from the OTT statistics.
Top 10 OTT Stats & Facts
- The global OTT market is expected to grow at a CAGR of 29.4% from 2020 to 2027.
- In 2023, China is predicted to reach $26 billion in OTT revenue.
- The smartphone segment will grow the highest CAGR during the 2020-2030 period based on device type.
- 72% of those surveyed could remember seeing a specific OTT ad campaign.
- The average consumer spends $8.53 per OTT service each month.
- In 2021, 78% of consumers in the US were using SVOD (subscription video-on-demand) service.
- By 2024, Video on Demand (VOD) sector is expected to grow to nearly $90 billion.
- An average millennial spends $18 monthly on online streaming services, such as Netflix.
- In 2020, time spent in video streaming apps hit almost 1 trillion hours.
- At the end of 2019, almost 25% of Netflix’s iPhone users in the US also used Disney+.
Global OTT Statistics and Market Trends
OTT is a somewhat new phenomenon, which means tremendous growth potential. With numerous companies entering the OTT area, a wide variety of options for consumers and amounts of ad inventory for marketers are presented.
Read on to find out the figures around this growing market.
1. During the 2020-2027 period, the global OTT market is estimated to grow at a CAGR of 29.4%.
(Allied Market Research)
While, in 2019, the global market size was calculated to be worth $121.61 billion, it will reach $1,039.03 billion by 2027, according to some stats.
With the OTT market expected to witness creative and progressive transformation, consumers will be able to access everything they desire in a single space.
2. By 2026, the global OTT devices and services market is estimated to reach $217.5 billion.
In 2020, in the middle of the pandemic crisis, this market was estimated at $77.1 billion, while by 2026, it is expected to grow at a CAGR of 18.3%. Another segment analyzed is Video, which will reach $133.7 Billion, growing at a CAGR of 18.7%.
3. Speaking of the OTT Video segment, in 2022, its revenue will reach $205,565 million.
During the 2022-2026 period, this segment will grow at a CAGR of 9.72% and reach a market volume of $297,915 million. Globally speaking, in 2022, with $87,261 million, the US will generate the most revenue.
4. 3.08 billion people used the OTT video globally in 2021.
As per some OTT statistics, by 2026, this number is expected to grow more, reaching around 3.93 billion people worldwide. Moreover, in 2022, the average revenue per user in this segment will amount to $62.65.
5. By 2026, over-the-top media revenue will reach around $210 billion.
This would mean that, compared to $106 billion generated in 2020, the OTT media revenue would almost double. This will also show a continuous growth that the market started experiencing in 2010, growing exponentially from $6.1 billion to over ten times that amount in 2020.
6. Since the pandemic outburst, 46% of viewers are watching more online content.
(Allied Market Research)
The rise of OTT services is mainly attributed to the increasing adoption of online communications tools, owing to the proliferation of internet-based communication services available today.
As per another research, OTT consumption primetime has moved to 7 pm onwards instead of 10 pm–12 am before the pandemic started. What’s more, the 2027 estimation concerning OTT market size is estimated to be higher than pre-Covid-19 estimates.
7. In the first quarter of 2021, South America saw a 240% growth in time spent streaming.
The second place belonged to Africa, with an increase of 149%, followed by Europe with a 122% increase over the one-year period. When it comes to more established streaming markets, North America and Asia had a significantly lower growth of 18% and 15%, respectively.
However, in Asia, the big screen captured only 11% share of viewing time, while 84% went on mobile phones and desktops. With a 115% increase in 2020, SmartTVs experienced the most extensive expansion of time spent, followed by a 43% tablet increase.
9. In 2023, China is predicted to reach $26 billion in OTT revenue.
(Digital TV Europe)
During the 2017-2023 period, China is pitched to almost triple its revenues and account for 20% of its share of the world’s OTT revenue.
In comparison, the UK is projected to be the globe’s third OTT market with revenues of $6.8 billion in 2023, followed by Japan and Germany, at $5.3 billion and $3.8 billion, respectively.
10. OTT users typically enjoy their media on three different devices and across three OTT services.
More than half of all Americans older than 18 use at least one online video service, while the average user streams more than two hours of content daily.
11. The smartphone segment will grow the highest CAGR during the 2020-2030 period based on device type.
Smartphones dominated the overall OTT market share in 2017 and 2019.
This segment is projected to stay strong in the future driven by increases in smartphone adoption rates and the growing demand for larger screen phones in developing countries.
While 1366.14 million units shipped in 2020, by 2026, the number is expected to reach 1556.67 million units in the smartphone market.
More Stats About OTT Services
The following stats should give you an even clearer idea of how the industry is doing globally. We will take a closer look at some of the habits of today’s consumers and the most popular devices and sectors within the industry.
12. OTT subscribers who are highly engaged complete 98% of all video ads.
As per a study from 2021, due to this percentage of subscribers, over-the-top has a strong advertising advantage.
13. 72% of OTT users can remember seeing a specific OTT ad.
If you’re going to advertise on OTT, you’re likely to reach a lot of potential customers.
Moreover, 66% of people have learned about a new product or company by watching a video ad on OTT, while 40% have even paused the content they were watching to go online and buy a product after seeing an OTT ad.
14. 65% of OTT users stated they wouldn’t mind watching ads.
This percentage of respondents stated they were comfortable watching ads to reduce or eliminate subscription costs. Therefore, if they are to be given a choice for watching video streaming services, they would prefer ad-supported content.
47% of the clients in the US are watching at least one free ad-supported video streaming service, including The Roku Channel or Pluto TV.
15. People spend an average of $8.53 per OTT service monthly.
The stats also show that people spend over 100 minutes on OTT apps daily. Moreover, the app usage was estimated to grow to a $120 billion industry by 2022 and $200 billion by 2024.
16. In 2021, 78% of consumers in the US were using SVOD (subscription video-on-demand) service.
This percentage represents an increase of over 25% in five years. Unsurprisingly, Netflix represents one of the most popular platforms, with the number of its US streaming subscribers passing the 70 million mark for the first time at the beginning of 2020.
17. By 2024, Video on Demand (VOD) sector is expected to grow to nearly $90 billion.
This sector started booming in 2020, and it shows no signs of slowing down. This comes as no surprise since Disney + and Netflix are among the streaming services dominating traditional providers.
VOD and OTT overlap in most cases; however, OTT describes the video content delivered over the internet, while VOD describes the video content that can be played back on demand.
Solely by the North American share, Roku managed to capture a 30% share of global big-screen viewing time, although the company only accounted for 8% share in Europe and 4% share in Africa, Asia, South America, and Oceania.
Since 2018, the Roku Store’s number of apps has grown 139%, including a 67% jump in the last quarter of 2019 alone.
19. By 2023, India is estimated to attain up to 500 million OTT users.
While there are 350 million users now, India will experience massive growth in OTT subscribers in a year. The most comprehensive OTT outlet, with 43 million subscribers in India, is Disney + Hotstar, followed by 5 million Netflix subscribers and Amazon Prime, with 17 million subscribers.
OTT User Demographics
In this section, we’ll try to examine some of the available demographic data concerning the over-the-top market. Keep reading if you want to find out how much an average millennial spends on Netflix or how many hours they spend on a streaming service.
20. An average millennial spends $18 monthly on online streaming services, such as Netflix.
In 2019, millennial OTT spending habits were quite different than those of other generations.
According to a survey, 26% of surveyed millennials stated they spend more on online streaming services every month than save for retirement. In comparison, another 26% don’t spend money on online streaming services each month.
21. Millennial OTT consumers spend 7.2 hours a day on their mobile phones.
In comparison, GenX consumers spend 6 hours, while baby boomers spend only 4.2 hours a day. On average, OTT consumers spend more than 6 hours a day on their mobile phones while spending more than 2 hours of mobile video.
What’s more, nearly one-third of OTT consumers say screen size does not affect how much time they spend watching or what type of content they watch.
22. 67% of millennials in the US would rather pay than have ads on their music streaming service.
There is more tolerance when it comes to streaming video since 48% of generation Z and 46% of millennials would rather pay to avoid ads on streaming video services.
23. 66% of people were intimidated when the content they wanted to watch was removed from service.
Furthermore, 53% of respondents stated they were frustrated by having to subscribe to multiple services to access the content they wanted.
52% experience difficulties accessing content across so many services, while 49% of respondents were frustrated if a service doesn’t provide them with useful recommendations.
24. 52% of millennials have binge-watched TV.
Following millennials are baby boomers, with 46% of them having binge-watched a TV, while 44% and 42% go to Gen Z and Gen X consumers.
Another survey from 2020, found that in the US, 60% of 13- to 17-year-olds and 69% of adults between the ages of 18 and 29 binge-watched TV shows or films in a series in one sitting.
Thus, many young viewers prefer watching entire series at once, and some adults also engage in binge-viewing regularly.
In comparison, 40% of millennials would share their streaming service account.
Moreover, Gen Z and millennials also lead when it comes to using streaming services on a personal device, with 52% and 40% respectively.
Interesting Facts & Stats About OTT Streaming
The final section deals with some OTT-related statistics and facts we thought you might find entertaining, such as how many people streamed a 2021 Super Bowl or whether Netflix’s subscriber growth is slowing down?
26. In 2020, time spent in video streaming apps hit almost 1 trillion hours.
As per a report from 2021, in the first quarter of 2019, global mobile consumers streamed 146 billion hours on mobile devices, while, by the last quarter of 2020, that number rose almost 65%, standing at 240 billion. For 2020 alone, the increase was 40% to 935 billion hours.
27. In 2021, 5.7 million viewers streamed Super Bowl each minute.
This marked an increase of 65% in streaming spectators compared to 2020. This comes as no surprise since, due to the Covid-19, fewer fans were at the stadium, leading to the increasing number of people watching live from their homes.
28. The popularity of 5G will probably skyrocket the adoption of OTT platforms in the next several years.
Nowadays, the high-speed internet represents one of the essential things in people’s lives, and with 5G connectivity, people will use more streaming videos with 4K resolution on mobile devices.
What’s more, 29% of consumers already stated they would pay a premium for 5G to retain better quality video and reduce buffering.
29. At the end of 2019, almost 25% of Netflix’s iPhone users in the US also used Disney+.
Not only does this show consumers are usually ready to pay for multiple services, but it also represents the highest overlap of users among leading video streaming apps in the US.
30. In the fourth quarter of 2021, Netflix added 8.3 million subscribers.
(Los Angeles Times)
Although this is a significant number, it still falls short of the initial forecast of 8.5 million. In 2021, the streamer added 18 million new subscribers, while in 2020, that number stood at 37 million.
31. YouTube has the highest reach and watch time of all ad-supported over-the-top (OTT) services.
(Think With Google)
YouTube reaches more viewers and keeps them watching longer, on average than any other ad-supported streaming TV service, according to a recent report by Comscore OTT Intelligence.
Does OTT continue to grow?
Yes, in 2019, the OTT industry’s value was $121.61 billion. Besides, since more viewers decide to cut the cord on cable, the industry will be worth $1.039 trillion by 2027.
What are the costs of building an OTT app?
The cost mainly depends on one’s requirements. If you are ready to give up $5,000, you will get an app with limited functionality, while aspiring to create an app similar to Hulu or Netflix will cost somewhere between $20,000-40,000.
What is the biggest OTT service in the US in terms of revenue?
According to stats from 2021, with 30.8% of all subscriptions belonging to them, Netflix takes up the first place as the biggest OTT service in the US in terms of revenue. With 25.9%, Disney takes up the high second place.
It’s clear from these statistics that the future of television is in OTT.
As an increasing number of people have been deciding to cut the cord and move towards online-only media consumption, OTT services are presented with fantastic growth opportunities.
Due to COVID-19, OTT has also given a remarkable possibility for live streaming popular events like conferences, music festivals, concerts, and more that would have otherwise been canceled. With that said, we hope these OTT statistics will help you understand more the importance and greatness of this industry.
We know it’s a lot to take in, but we think it’s well worth the investment of your time. We know it’s hard to find all the information on a particular subject in one place, so we’re glad that we could put this together for you. We hope this information will inspire you to explore the world of OTT streaming even more!
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