OTT Video - Ethiopia | Statista Market Forecast

In Ethiopia, revenue in the OTT Video market market is projected to reach US$67.55m in 2024.
Revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 12.37%, leading to a projected market volume of US$121.10m by 2029.
The largest market within this market in Ethiopia is Video Streaming (SVoD), which is anticipated to have a market volume of US$51.32m in 2024.
In a global context, the majority of revenue will be generated the United States, with a projected figure of US$133.70bn in 2024.
Within the OTT Video market market in Ethiopia, the number of users is expected to reach 61.2m users by 2029.
User penetration in this sector will be 28.3% in 2024 and is projected to rise to 41.9% by 2029.
The average revenue per user (ARPU) in Ethiopia's OTT Video market market is projected to amount to US$1.84 in 2024.
Ethiopia's burgeoning OTT video market is experiencing significant growth as increasing internet penetration and a youthful demographic drive demand for diverse content.

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 Ethiopia is experiencing significant growth and development, driven by various factors such as increasing internet penetration, changing consumer preferences, and the availability of affordable smartphones. Customer preferences in the OTT Video market in Ethiopia are shifting towards online streaming platforms, as consumers seek convenience and a wide range of content options. With the rise of internet connectivity and the availability of affordable smartphones, more Ethiopians are accessing online video content. This has led to a growing demand for OTT Video services that offer a diverse range of content, including movies, TV shows, and original programming. Trends in the market indicate that local and international OTT Video providers are entering the Ethiopian market to cater to the growing demand. These providers are offering subscription-based services that allow consumers to access a vast library of content at their convenience. Additionally, there is a trend towards the localization of content, with providers offering Ethiopian movies, TV shows, and documentaries to cater to the local audience. Local special circumstances in Ethiopia, such as the recent liberalization of the telecommunications sector, have played a significant role in the development of the OTT Video market. The government's decision to open up the telecom sector to foreign investment has resulted in increased competition and improved internet connectivity. This has created an enabling environment for the growth of the OTT Video market, as more Ethiopians now have access to high-speed internet and can easily stream online content. Underlying macroeconomic factors, such as the country's young and tech-savvy population, are also contributing to the growth of the OTT Video market in Ethiopia. The country has a large population of young people who are increasingly adopting digital technologies and are more likely to consume online video content. Additionally, the rising disposable incomes and urbanization in Ethiopia are creating a larger consumer base for OTT Video services. Overall, the OTT Video market in Ethiopia is experiencing rapid growth and development, driven by increasing internet penetration, changing consumer preferences, and favorable macroeconomic factors. As more Ethiopians gain access to high-speed internet and affordable smartphones, the demand for online video content is expected to continue to rise, presenting opportunities for both local and international OTT Video providers.

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.