Nowadays digitalization has been changing globally as media consumption is changing. Due to the increase in better networks, speedy internet connections, and technological innovations in smart devices like Mobiles, Laptops, TVs, etc. have resulted in the growth of OTT media which allows users to view their favorite content via the internet.
The global OTT market size was valued at $121.61 billion in 2019 and is projected to reach $1,039.03 billion by 2027, growing at a CAGR of 29.4% from 2020 to 2027. The United States is one of the largest OTT markets in the world with a CAGR of approximately 11.22% in terms of revenue and approximately 2.25% in terms of subscribers over the forecast period. Thirty to thirty-five million people have subscribed to OTT services and due to this increase in numbers, there is a high probability that it will replace traditional media distribution channels.
Ad-supported VoD platforms are experiencing strong growth in ad revenues, thereby making the advertisement-based revenue model popular amidst the COVID-19 pandemic. For instance, in five of the major ad-supported streaming platforms such as Hulu, Peacock, Roku, Pluto TV, and Tubi, ad revenue reached 31% year-over-year in the second quarter of 2020.
After the covid-19 pandemic, there comes a big change in lifestyle and behaviors including the consumption of media. According to Nielson, there is an 18% increase in the consumption of TV and all the related items in America, especially for teenagers as there are no longer schools. Social distancing and isolation caused a greater demand for Home digital consumption which results in the demand for subscription-based Streaming services.
This outbreak of covid-19 has caused a robust increase in the consumption of OTT media platforms. This change in the increase of viewership depends upon various factors such as time, content, convenience, and mainly WFH (work from home). As a result of social distancing people are now bound to stay at home and isolate themselves which results in an increase in Streaming sites. They have now more time to spend and can watch movies with their families. Work from home also plays a crucial role in the increment of the viewership of OTT platforms.
Nowadays trends are emerging from traditional media to OTT platforms. Due to the fast increase in OTT viewership, there is a lot of scope in this unexplored business. Today there are many OTT platforms like Netflix, Amazon Prime, Disney, etc. which are providing services to consumers as a result of this their subscribers are shooting and people are moving from TV to OTT platforms. Where they can watch the content of their demand.
The lockdown has played an important role in the increase in the viewership of OTT platforms. The average hours spent on OTT platforms before this outbreak was 0-2 hours which has now changed to 2-5 hours and the average spending of a user on OTT platforms was approximately $0-$2.5 per month which has now climbed to 2.5 – 4.5 dollars.
As per the new data from international research firm Parks Associates Three-quarters of U.S. broadband home users have now subscribed to the (OTT) service which is up to 6 million users since the starting months of 2019.
A survey conducted in the mid of March and April reveals that during the COVID-19 lockdown, In which 10k broadband users took part and voted. It found 76% have now subscribed to an OTT service, due to the adoption of pay-TV services like YouTube TV, Hulu with Live TV, and Netflix which has increased to 12% of internet users.
Steve Nason, research director at Parks Associates says that “Users are now experimenting with watching the content on different platforms and different devices. We anticipate a number of changes to occur, including higher consumption combined with reduced spending per month on services, which could boost ad-based services, as well as shifts in what content consumers are watching.”
Reelgood is an OTT aggregator that tracks that over 4.8 million users watch the OTT platforms between March 16 and April 26 and the viewers shift the trends and viewing preferences, the company data showed that people are shifting to genera like comedy, spirituality, and children’s programming has been increased while horror, war, and crime has fallen.
According to this data, the most-watched shows during the period were “Ozark,” “Money Heist” and “Tiger King” from Netflix. The most popular movie during this time period was “Parasite.” And most-watched TV show was “Doctor Foster” and the movie “The Silver Linings Playbook” saw the biggest jumps in popularity when compared to the pre-COVID-19 period of Feb. 17-March 15
COVID-19 has escalated digital media consumption. The above discussion tells how OTT platforms are not emerging and how people are shifting from traditional TV to OTT platforms due to the lockdown and working from home. The key factors that affect the users are also discussed above. Post-COVID-19, the size of the OTT market size is estimated to grow from $171.36 billion in 2020 and is projected to reach $1,039.03 billion by 2027, at a CAGR of 29.4%. The current estimation of 2027 is projected to be higher than pre-COVID-19 estimates.
Online Streaming has now increased during this pandemic and also creates an opportunity for people to invest in OTT platforms where they can provide their services and can earn like Netflix and other OTT platforms. You get the best Netflix Clone in 5 simple steps with Vodlix.