OTT Market to surpass US$200 billion by 2024

The global OTT video market will surpass US$200 billion by 2024, claims a new report.

According to new figures from ABI Research, new services like Disney+ and Apple TV+, along with the continued expansion of major players from Netflix and Amazon, will ensure that 90% of that coming from subscription and ad revenue.

The report adds that large-scale growth in the Asia Pacific region – and particularly in China with companies like iQIYI/Baidu and Tencent – as well as the expansion of technologies like 5G will continue to present new market opportunities.

Michael Inouye, principal analyst at ABI Research, said: “Cord-cutting is often regarded as a consequence of expanding OTT consumption, but the market dynamics are more complex, particularly when one considers how the pay TV industry has embraced OTT as a complement and value-additive, rather than strict competition. Over time, we expect the traditional pay TV offer to continue to evolve and become indistinguishable from a pure OTT package of services.

“Increasingly, we’re seeing more solutions and conversations about bringing content and services together. This includes pay TV and OTT bundles and extends to cross-platform advertising, analytics, and customer/service management. Ultimately it makes the market more accessible to a wider range of companies and expands the potential video touchpoints, particularly as new technologies like 5G, smart home, and Augmented/Virtual Reality play larger roles.”