OTT Video - Australia & Oceania | Statista Market Forecast

In Australia & Oceania, revenue in the OTT Video market market is projected to reach US$5.66bn in 2024.
Revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 6.36%, resulting in a projected market volume of US$7.71bn by 2029.
The largest market within this market is OTT Video Advertising, which is anticipated to have a market volume of US$3.74bn in 2024.
In a global context, the majority of revenue will be generated the United States, with a figure of US$133.70bn in 2024.
Within the OTT Video market market, the number of users in Australia & Oceania is expected to reach 27.3m users by 2029.
User penetration in this region is projected to be 51.9% in 2024, increasing to 59.6% by 2029.
The average revenue per user (ARPU) in the OTT Video market market in Australia & Oceania is projected to amount to US$251.40 in 2024.
Australia's OTT video market is experiencing significant growth, driven by increasing consumer demand for diverse content and innovative streaming platforms.

Definition:

OTT Video refers to a digital media distribution model where users can access and watch video content at their convenience, usually through an online platform or service. With VoD, users have the flexibility to choose what content they want to watch, when they want to watch it, and how they want to consume it. This allows users to stream or download video content on demand, without the need for traditional broadcasting schedules or physical media. VoD platforms typically offer a wide range of content, including movies, TV shows, documentaries, and other video content, which can be accessed and viewed instantly or stored for later viewing. VoD has become increasingly popular in recent years, offering convenience, flexibility, and a personalized viewing experience for users.

Structure:

The market consists of several markets, namely Video Streaming (SVoD), which is streaming on a subscription basis, Pay-per-View (TVoD), which is paying for digital video content and watch it online, Video Downloads (EST), which is the download of digital video content and OTT Video Advertising, which is the advertising in video streaming.

Additional Information:

The market comprises revenues, users, average revenue per user, and penetration rates. Revenues are generated through purchases and subscriptions. Market numbers for OTT Video can also be found in the video-on-demand market. Key players in the market are companies, such as Netflix, Amazon or Disney+.

Rentals as single transaction or pay-per-view (transactional VoD or TVoD)
Subscription-based services (subscription VoD or SVoD)
Digital purchases via download or permanent cloud storage (electronic-sell-through or EST)
OTT Video Advertising
Free ad-supported streaming TV (FAST) services, such as Pluto TV or Freevee

Pay-TV subscriptions (cable TV, satellite TV, IPTV, DTTV)
Physical home video (DVD & Blu-ray)
Traditional TV advertising

The OTT Video market in Australia & Oceania has been experiencing significant growth in recent years, driven by changing customer preferences and the increasing availability of high-speed internet connections. Customer preferences in the region have shifted towards on-demand video streaming services, as consumers seek convenience and flexibility in their entertainment choices. The rise of OTT platforms such as Netflix, Amazon Prime Video, and Disney+ has provided a wide range of content options to cater to different tastes and preferences. This trend is not unique to Australia & Oceania, but is part of a global shift towards digital streaming services. One of the key trends in the OTT Video market in Australia & Oceania is the increasing adoption of mobile devices for video streaming. With the proliferation of smartphones and tablets, consumers are now able to access their favorite shows and movies on the go. This has led to a surge in mobile video consumption, with many OTT platforms optimizing their services for mobile devices. Additionally, the availability of affordable data plans and the expansion of 4G and 5G networks have further facilitated the growth of mobile video streaming in the region. Another trend in the market is the emergence of local OTT players, offering region-specific content to cater to the diverse cultural preferences of the Australian and Oceanian audience. These local players are able to provide content that is more relevant and relatable to the local population, which gives them a competitive edge over global OTT giants. This trend reflects the importance of local content in driving customer engagement and retention in the OTT Video market. Local special circumstances in Australia & Oceania also contribute to the development of the OTT Video market. The region is geographically dispersed, with many remote and rural areas that have limited access to traditional broadcast television. This has created a demand for OTT services as an alternative source of entertainment for these communities. Additionally, the multicultural nature of the region has led to a diverse range of content preferences, which can be better catered to through OTT platforms that offer a wide selection of international content. Underlying macroeconomic factors, such as increasing disposable incomes and improving internet infrastructure, have also played a role in the growth of the OTT Video market in Australia & Oceania. As incomes rise, consumers are willing to spend more on entertainment and are increasingly opting for OTT services over traditional pay TV. Furthermore, the ongoing expansion of high-speed internet networks has made it easier for consumers to access and stream video content, driving the demand for OTT services. In conclusion, the OTT Video market in Australia & Oceania is experiencing significant growth due to changing customer preferences, the increasing adoption of mobile devices, the emergence of local players, local special circumstances, and underlying macroeconomic factors. These trends and developments are shaping the way consumers in the region consume and access video content, and are likely to continue driving the growth of the OTT Video market in the future.

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.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

Online video streaming has visibly transformed the global media landscape and impacted viewing behavior around the world. Driven by rapid leaps in internet adoption, widespread availability of mobile devices, and the ever-increasing popularity of online video content, the global video streaming market has experienced unprecedented growth in the last decade. In 2023, the over-the-top (OTT) video revenue reached an estimated 288 billion U.S. dollars, with the United States accounting for the largest share of revenue worldwide. Considering that the list of international streaming services and the catalog of online video content continue to expand at a rapid pace, the number of OTT users worldwide is expected to reach new heights in the future.