Over-the-top (OTT) refers to the distribution of digital content through various business and revenue models. Essentially, OTT encompasses the streaming of audio and visual content via the internet.
Currently, the OTT sector is in its early stages but is rapidly gaining traction as a popular technology worldwide. The market is anticipated to undergo significant innovations and advancements, allowing consumers to access a wide array of content in one convenient location. This evolution is likely to include the capability of OTT platforms to offer not only video and audio services but also physical products, indicating a promising upward trajectory during the forecast period.
The global OTT market can be categorized based on the type of content it delivers, which includes Voice over Internet Protocol (VoIP), text and images, and video. Furthermore, the market can be segmented by platform, which includes smart devices, gaming consoles, set-top boxes, as well as laptops, tablets, and desktops.
According to projections, the global OTT market is expected to experience a compound annual growth rate (CAGR) of 17.16% from 2017 to 2025, reaching an estimated value of approximately US$ 158.4 billion by the year 2025. A significant factor contributing to the increasing demand for OTT services is the rising investments in the development of internet and broadband infrastructure, particularly in developing nations. Governments around the world are emphasizing the importance of expanding high-speed internet access to both urban and rural populations. Improved infrastructure, combined with decreasing internet service costs, has spurred the growth of the OTT market in these regions.
Despite the positive outlook, many countries still encounter challenges related to inadequate broadband penetration, which poses obstacles to market expansion. The quality and availability of broadband infrastructure are crucial drivers for the growth of the OTT sector.
The report highlights several key players in the OTT market, including Akamai Technologies, Inc., Amazon.com, Inc., Apple, Inc., CBS Corporation, Inc., Facebook, Inc., Google, Inc., HBO NOW, Hulu L.L.C., Netflix, Inc., and Roku, Inc., among others. These companies are at the forefront of the OTT revolution, shaping the future of digital content distribution.