In the rapidly evolving world of digital entertainment, Over-The-Top (OTT) platforms are reshaping how we consume media.
In 2023, the OTT video market’s growth trajectory is nothing short of impressive. With projections estimating global revenue in the OTT video market to hit US$316 billion by this year end, the industry’s expansion reflects a compound annual growth rate (CAGR) of 7.72% leading up to 2027.
Key Statistics
- Global OTT earnings to surpass $476 billion by 2027.
- 2023’s OTT video service revenue estimated at $316 billion.
- U.S. OTT market projected to grow to $91 billion by 2028.
- India’s OTT Rise from $3.67 Billion in 2023 to an Expected $5.25 Billion by 2027
- OTT ad spend expected to rise by 13% in 2023.
- High OTT service usage in Canada at 89.1%, New Zealand at 85.3%, and the UK at 85.1%.
- OTT Video Advertising to hit a market volume of $176.60 billion in 2023.
- U.S. to generate the most revenue at $126.5 billion in 2023.
- User base to reach 4.2 billion by 2027.
- User penetration rate to climb from 45.7% in 2023 to 53.1% by 2027.
- Average revenue per user(ARPU) projected at $84.12 in 2023.
- Netflix Leads With 231 million subscribers worldwide.
Global OTT Earnings To Surpass $476 Billion By 2027
Across the whole world, the money streaming services make is expected to grow a lot. By 2027, they could be earning more than $476 billion. This is because more and more people are choosing to watch shows online.
2023’s OTT Video Service Revenue Estimated At $316 Billion
For the year 2023, all the streaming services together might make about $316 billion. This is a big amount and shows that a lot of people are paying to watch their favorite shows and movies on the internet.
U.S. OTT Market Projected To Grow To $91 Billion By 2028
In the next few years, up to 2028, the United States could see its streaming market become worth about $91 billion. This means Americans are likely to keep using and spending money on streaming services.
India’s OTT Rise From $3.67 Billion In 2023 To An Expected $5.25 Billion By 2027
In India, the OTT market is seeing a sharp rise, with 2023 revenues expected at $3.67 billion. The market is on a fast track, with an anticipated climb to $5.25 billion by 2027, marking a significant upturn. Subscription services like Disney+ Hotstar are leading the charge, with a large audience in India.
OTT Ad Spend Expected To Rise By 13% In 2023
In 2023, the money that companies plan to spend on streaming service ads is likely to go up by 13%. This means companies see these platforms as a good place to advertise.
High OTT Service Usage In Canada At 89.1%, New Zealand At 85.3%, And The UK At 85.1%
In Canada, New Zealand, and the UK, a lot of people — around 85% to 89% — use streaming services to watch TV and movies. This shows that in these countries, streaming is a very common way for people to get their entertainment.
OTT Video Advertising To Hit A Market Volume Of $176.60 Billion In 2023
The amount of money made from ads on streaming services is expected to be huge — around $176.60 billion just in 2023. This means that there’s a lot of money in making ads for streaming videos.
U.S. To Generate The Most Revenue At $126.5 Billion In 2023
The United States is expected to make the most money from streaming services in 2023 — about $126.5 billion. This shows that the U.S. is a very important place for the streaming industry.
User Base To Reach 4.2 Billion By 2027
By 2027, the number of people using streaming services around the world could reach 4.2 billion. This means that streaming is becoming more and more popular all over the globe.
User Penetration Rate To Climb From 45.7% In 2023 To 53.1% By 2027
The percentage of people who use streaming services is expected to increase from 45.7% to 53.1% between 2023 and 2027. So, more and more people are expected to start using streaming services in the coming years.
Average Revenue Per User (ARPU) Projected At $84.12 In 2023
In 2023, every person who uses streaming services is expected to spend an average of $84.12. This gives us an idea of how much money a streaming service can make from each person who signs up.
Netflix Leads With 231 Million Subscribers
In 2023, Netflix is the largest OTT platform in the world. It stands at the top with an impressive 231 million subscribers globally.
Netflix owns 16% of the OTT market share and is the largest shareholder in the OTT market. It is followed by Disney+ and Amazon Prime Video, with a 14% and 13% market share, respectively.
Top 10 OTT Platforms in the World by Subscribers
Here’s a quick rundown of the world’s most popular streaming services based on the number of people subscribed to them in 2023:
- Netflix: Leading the pack, Netflix has 231 million subscribers, thanks to its wide variety of shows and global reach.
- Amazon Prime Video: Not far behind, with 200 million subscribers, offering a mix of original content and a vast library of movies and TV shows.
- Disney+: Capturing imaginations with 138 million subscribers, Disney+ is home to beloved franchises and classic films.
- Tencent Video: A major player with 124 million subscribers, showcasing a variety of content, particularly strong in the Asian market.
- iQIYI: With 106 million subscribers, iQIYI is another giant in the Asian streaming scene, offering a range of dramas and movies.
- HBO Max: 86.8 million subscribers are enjoying HBO’s premium content, including blockbuster movies and high-quality series.
- Hulu: With 43 million subscribers, Hulu offers a blend of TV shows, movies, and original content.
- Paramount: Home to 32.8 million subscribers, providing access to Paramount movies and series.
- Apple TV+: Although newer to the scene, it has 25 million subscribers and is growing, thanks to its original programming.
- Peacock: Rounding out the top ten with 20 million subscribers, Peacock offers a mix of new and classic NBC content.
OTT Users Over the Years
| Year | Number of OTT users |
|---|---|
| 2017 | 2.2 billion |
| 2018 | 2.4 billion |
| 2019 | 2.7 billion |
| 2020 | 3.1 billion |
| 2021 | 3.3 billion |
| 2022 | 3.26 billion |
| 2023 | 3.5 billion |
In 2022, the OTT platforms were accessed by 3.23 billion users, and in 2023 it increased to 3.5 billion users.
OTT Users for the Upcoming Years
| Year | Number of OTT users |
|---|---|
| 2024 | 3.7 billion |
| 2025 | 3.9 billion |
| 2026 | 4.05 billion |
| 2027 | 4.2 billion |
By 2027, OTT Platforms are expected to have 4.2 billion users
Conclusion
By looking at the numbers, it’s evident that OTT platforms are on a steady climb, with user numbers growing each year. From a substantial 3.5 billion users in 2023, the market is set to expand even further to an expected 4.2 billion by 2027.
Netflix remains the most favored, leading the charge with the highest number of subscribers, which signifies its strong foothold in the market and influence on viewing habits worldwide.
The statistics from 2023 to 2027 depict a clear trend that the OTT industry is not just a phase but a growing part of our digital lives with each passing year, more people are signing up to stream their favorite shows and movies, making OTT platforms an integral part of entertainment worldwide.
References
- WebFX: https://www.webfx.com/blog/ppc/ott-statistics/
- TVScientific: https://www.tvscientific.com/insight/ott-statistics#:~:text=OTT
- Mordor Intelligence: https://www.mordorintelligence.com/industry-reports/india-smart-tv-and-ott-market/market-size
- Axinom: https://www.axinom.com/article/ott-industry-trends
- Demand Sage: https://www.demandsage.com/ott-statistics/
- Statista: https://www.statista.com/outlook/amo/media/tv-video/ott-video/worldwide
- Statista: https://www.statista.com/outlook/amo/media/tv-video/ott-video/india
- Teyoto: https://teyuto.com/blog/top-10-ott-video-streaming-services-2023#:~:text=Which ott platform has the,200 million subscribers in 2023.