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OTT Video - Eastern Africa

Eastern Africa

Revenue in the OTT Video market market in Eastern Africa is projected to reach US$503.60m in 2024.
Revenue in this region is expected to show an annual growth rate (CAGR 2024-2029) of 11.34%, resulting in a projected market volume of US$861.80m by 2029.
The largest market within OTT Video market in Eastern Africa is Video Streaming (SVoD), which is anticipated to have a market volume of US$341.90m in 2024.
In global comparison, the majority of revenue will be generated the United States, estimated at US$133,700.00m in 2024.
In the OTT Video market market, the number of users in Eastern Africa is expected to amount to 211.3m users by 2029.
User penetration in Eastern Africa will be 27.4% in 2024 and is anticipated to reach 40.8% by 2029.
The average revenue per user (ARPU) in the OTT Video market market in Eastern Africa is projected to amount to US$4.00 in 2024.
In Eastern Africa, the OTT video market is witnessing a surge in localized content production, reflecting the region's diverse cultural narratives and increasing consumer demand.

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

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Analyst Opinion

The OTT Video market in Eastern Africa has been experiencing significant growth in recent years.

Customer preferences: Customers in Eastern Africa have shown a strong preference for OTT Video services due to several factors. Firstly, the increasing availability of high-speed internet has made it easier for consumers to access and stream video content on their devices. Additionally, the affordability of smartphones and the growing popularity of mobile data plans have made it more convenient for people to watch videos on the go. Furthermore, the wide variety of content available on OTT platforms, including local and international movies, TV shows, and sports, has attracted a diverse range of viewers in the region.

Trends in the market: One of the key trends in the OTT Video market in Eastern Africa is the rise of local content. Streaming platforms are increasingly investing in producing and acquiring local content to cater to the preferences of viewers in the region. This trend has not only helped to boost the growth of the local entertainment industry but has also attracted a larger audience who can relate to and connect with the content. Another trend is the emergence of partnerships between OTT platforms and local telecom providers. These partnerships have led to the bundling of OTT services with mobile data plans, making it more affordable for consumers to access video content.

Local special circumstances: Eastern Africa has a young and tech-savvy population, which has contributed to the rapid adoption of OTT Video services in the region. The popularity of social media platforms and the increasing use of smartphones have created a culture of digital consumption among the youth, who are the primary consumers of OTT Video services. Furthermore, the region has a vibrant film and music industry, which has helped to fuel the demand for local content on OTT platforms.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the OTT Video market in Eastern Africa. The region has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer spending. This has allowed more people to afford internet services and smartphones, driving the demand for OTT Video services. Additionally, the ongoing investment in digital infrastructure, including the expansion of 4G networks, has improved internet connectivity and made it easier for consumers to access and stream video content.

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.