OTT Video - EU-27 | Statista Market Forecast

In the EU-27, revenue in the OTT Video market market is projected to reach US$29.03bn in 2024.
Revenue is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 6.28%, leading to a projected market volume of US$39.37bn by 2029.
The largest market within this market in the EU-27 is Video Streaming (SVoD), which is expected to have a market volume of US$13.88bn in 2024.
In a global context, the majority of revenue will be generated the United States, with figures reaching US$133.70bn in 2024.
In the EU-27 OTT Video market market, the number of users is expected to reach 321.4m users by 2029.
User penetration in the EU-27 will be 67.9% in 2024 and is projected to increase to 72.4% by 2029.
The average revenue per user (ARPU) in the OTT Video market market in the EU-27 is projected to amount to US$95.53 in 2024.
The EU-27 is witnessing a significant shift towards localized content in OTT Video, reflecting diverse cultural preferences across member states.

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 EU-27 is experiencing significant growth and development, driven by customer preferences for on-demand content and the increasing availability of high-speed internet connections.

Customer preferences: Consumers in EU-27 are increasingly gravitating towards OTT Video platforms due to the convenience and flexibility they offer. OTT Video allows users to stream their favorite movies and TV shows on-demand, eliminating the need for traditional cable or satellite TV subscriptions. This appeals to consumers who prefer to watch content at their own pace and on their preferred devices. Additionally, the wide variety of content available on OTT Video platforms caters to diverse consumer preferences, further driving adoption.

Trends in the market: One of the key trends in the OTT Video market in EU-27 is the rise of local and regional content. While international content still holds a significant share, local productions are gaining popularity among consumers. This trend can be attributed to the increasing availability of localized content on OTT platforms, which resonates with the cultural and linguistic preferences of consumers in specific countries. As a result, OTT Video platforms are investing in original local content to attract and retain subscribers. Another trend in the market is the growing competition among OTT Video platforms. With the entry of global players and the emergence of local platforms, there is intense competition to capture market share. This has led to a proliferation of subscription-based models, with platforms offering different pricing tiers and content libraries to cater to diverse consumer segments. Additionally, platforms are investing in user-friendly interfaces and personalized recommendations to enhance the user experience and differentiate themselves from competitors.

Local special circumstances: The OTT Video market in EU-27 is influenced by local special circumstances that shape consumer preferences and market dynamics. For example, in countries with multiple official languages, OTT Video platforms need to offer content in different languages to cater to diverse linguistic groups. Similarly, countries with strong local film industries may have a higher demand for local content, prompting platforms to invest in regional productions.

Underlying macroeconomic factors: The development of the OTT Video market in EU-27 is also influenced by underlying macroeconomic factors. The increasing penetration of high-speed internet connections across the region has been a key enabler for the growth of OTT Video platforms. As more households gain access to reliable internet, the potential customer base for OTT Video platforms expands. Additionally, the rise of smartphones and other connected devices has further facilitated the consumption of OTT Video content, as users can stream on-the-go. In conclusion, the OTT Video market in EU-27 is witnessing robust growth driven by customer preferences for on-demand content and the availability of high-speed internet connections. The market is characterized by the rise of local and regional content, intense competition among platforms, and the influence of local special circumstances. The underlying macroeconomic factors, including internet penetration and the proliferation of connected devices, are also contributing to the development 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.