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OTT Video - Africa

Africa

In Africa, revenue in the OTT Video market market is projected to reach US$3.91bn in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 8.54%, leading to a projected market volume of US$5.89bn by 2029.
The largest market within this market is Video Streaming (SVoD), which is anticipated to have a market volume of US$2.71bn in 2024.
Comparatively, the highest revenue generation will occur the United States, which is expected to generate US$133,700.00m in 2024.
In Africa's OTT Video market market, the number of users is expected to reach 579.2m users by 2029.
User penetration will be at 29.9% in 2024 and is projected to rise to 40.0% by 2029.
The average revenue per user (ARPU) in Africa's OTT Video market market is expected to amount to US$10.06 in 2024.
In Africa, the OTT video market is rapidly evolving, driven by increased mobile internet penetration and a growing appetite for diverse local content.

Key regions: United Kingdom, Germany, Asia, South Korea, Japan

Market

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Analyst Opinion

The OTT Video market in Africa has been experiencing significant growth in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to this development. Customer preferences in Africa have shifted towards consuming video content online. This can be attributed to several factors, including the increasing availability of affordable smartphones and internet connectivity. Additionally, the rise of social media platforms and the popularity of video streaming services such as YouTube have contributed to the growing demand for OTT video in the region. Trends in the market indicate a strong growth potential for OTT video in Africa. The continent has a large and young population, which is increasingly tech-savvy and eager to consume digital content. This demographic, combined with the improving internet infrastructure and the proliferation of mobile devices, has created a fertile ground for the expansion of OTT video services. Local special circumstances also play a role in the development of the OTT Video market in Africa. The continent is characterized by a diverse range of cultures, languages, and preferences. As a result, OTT video providers need to cater to the specific needs and interests of different African countries and regions. This includes offering content in local languages and featuring culturally relevant programming. Underlying macroeconomic factors have also contributed to the growth of the OTT Video market in Africa. The continent has been experiencing rapid economic growth, with many countries witnessing an expansion of the middle class. This has led to increased disposable income and a greater willingness to spend on entertainment and leisure activities, including OTT video subscriptions. In conclusion, the OTT Video market in Africa is developing rapidly due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. As the continent continues to embrace digital technology and improve internet connectivity, the demand for OTT video services is expected to grow further. OTT video providers that can effectively cater to the diverse needs and preferences of African consumers are likely to thrive in this evolving market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on Traditional TV & Home Video and OTT (over-the-top) Services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective segment. This spending factors in discounts, margins, and taxes.

Modeling approach / Segment size:

The segment size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, number of internet users, and internet consumption.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant segment. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.