OTT Video - CIS | Statista Market Forecast

In the CIS region, revenue in the OTT Video market market is projected to reach US$2.87bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.19%, resulting in a projected market volume of US$4.06bn by 2029.
The largest market within this market is Video Streaming (SVoD), which is anticipated to have a market volume of US$1.37bn in 2024.
In global comparison, the majority of revenue will be generated the United States, which is expected to reach US$133.70bn in 2024.
In the OTT Video market market, the number of users in the CIS region is expected to amount to 176.7m users by 2029.
User penetration in the CIS is projected to be 57.3% in 2024 and is expected to reach 72.1% by 2029.
The average revenue per user (ARPU) in the OTT Video market market within the CIS region is projected to amount to US$20.61 in 2024.
As CIS countries increasingly embrace OTT video platforms, localized content and regional partnerships are becoming essential for capturing audience engagement and loyalty.

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 CIS has been experiencing significant growth in recent years, driven by changing customer preferences and the increasing availability of high-speed internet connections.

Customer preferences: Customers in CIS countries are increasingly turning to OTT Video platforms for their entertainment needs. This shift in preference can be attributed to several factors. Firstly, the convenience of on-demand content allows viewers to watch their favorite movies and TV shows at their own pace and on their preferred devices. This flexibility is particularly appealing to busy individuals who may not have the time to follow traditional TV schedules. Secondly, the wide variety of content available on OTT Video platforms caters to diverse tastes and interests. Viewers can choose from a vast library of movies, TV series, documentaries, and even live sports events. This extensive selection ensures that there is something for everyone, making OTT Video platforms a popular choice among a wide range of demographics.

Trends in the market: One of the key trends in the OTT Video market in CIS is the rise of local content. While international content remains popular, there is a growing demand for local movies, TV shows, and documentaries. This trend can be attributed to the desire for viewers to connect with stories and characters that are closer to their own culture and experiences. As a result, OTT Video platforms are increasingly investing in the production and acquisition of local content to cater to this demand. Additionally, partnerships and collaborations with local production companies and talent are being forged to ensure a steady supply of high-quality local content. Another trend in the market is the increasing adoption of subscription-based models. Many OTT Video platforms in CIS offer subscription plans that provide unlimited access to their content library for a fixed monthly fee. This model has gained popularity due to its affordability and convenience. By subscribing to a platform, viewers can enjoy a wide range of content without the need to make individual purchases or rentals. This subscription-based approach also allows OTT Video platforms to generate a steady stream of revenue, which can be reinvested in content production and platform development.

Local special circumstances: The OTT Video market in CIS faces some unique challenges and opportunities. One of the key challenges is the linguistic diversity of the region. CIS countries are home to multiple languages, and catering to the preferences of each linguistic group requires careful localization efforts. OTT Video platforms must ensure that their content is available in different languages and that subtitles or dubbing options are provided to enhance the viewing experience. This localization effort can be resource-intensive but is necessary to effectively penetrate the market.

Underlying macroeconomic factors: The growth of the OTT Video market in CIS is also influenced by underlying macroeconomic factors. The increasing availability of high-speed internet connections and the growing affordability of smartphones and other connected devices have played a significant role in driving the adoption of OTT Video platforms. As more people gain access to the internet and digital technology, the potential audience for OTT Video services continues to expand. Additionally, the rising disposable income levels in CIS countries have made entertainment and leisure activities more accessible to a larger segment of the population, further fueling the demand for OTT Video services. In conclusion, the OTT Video market in CIS is experiencing significant growth due to changing customer preferences, the availability of diverse content, and the increasing adoption of subscription-based models. The rise of local content and the challenges posed by linguistic diversity are shaping the market landscape. The underlying macroeconomic factors, such as the availability of high-speed internet and rising disposable incomes, are also contributing to the growth of the market.

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.