OTT Video - Europe | Statista Market Forecast

In Europe, revenue in the OTT Video market market is projected to reach US$50.71bn in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 5.77%, leading to a projected market volume of US$67.13bn by 2029.
The largest market within this market in Europe is OTT Video Advertising, which is anticipated to have a market volume of US$23.98bn in 2024.
In a global context, most revenue will be generated the United States, amounting to US$133.70bn in 2024.
Within the European OTT Video market market, the number of users is expected to reach 636.9m users by 2029.
User penetration in Europe is projected to be 67.4% in 2024 and is expected to increase to 75.6% by 2029.
The average revenue per user (ARPU) in the European OTT Video market market is projected to be US$89.10 in 2024.
In Europe, the OTT video market is increasingly characterized by localized content strategies as platforms aim to engage diverse cultural audiences effectively.

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 Europe is experiencing significant growth and development.

Customer preferences: Customers in Europe are increasingly turning to OTT Video services for their entertainment needs. The convenience and flexibility of being able to stream content on demand appeals to a wide range of consumers. Additionally, the availability of a vast library of movies, TV shows, and original content allows customers to find and watch their favorite content at their own convenience.

Trends in the market: One of the key trends in the European OTT Video market is the rise of local and regional players. While global giants like Netflix and Amazon Prime Video continue to dominate the market, local players are gaining traction by offering content that is tailored to the preferences of the local audience. These local players often have a better understanding of the local culture and can provide content that resonates with the viewers. Another trend in the market is the increasing adoption of smart TVs and streaming devices. With the advancements in technology, more and more households in Europe are equipped with smart TVs or devices like Roku or Apple TV, which allow easy access to OTT Video services. This has fueled the growth of the market as it removes the need for additional hardware and provides a seamless streaming experience.

Local special circumstances: One of the unique aspects of the European market is the diversity of languages and cultures across different countries. This presents both opportunities and challenges for OTT Video providers. On one hand, it allows for the creation of content that caters to specific local markets, increasing the appeal and relevance of the service. On the other hand, it requires providers to invest in localization efforts, including subtitles and dubbing, to ensure that the content is accessible to a wider audience.

Underlying macroeconomic factors: The growing OTT Video market in Europe can be attributed to several underlying macroeconomic factors. Firstly, the increasing penetration of high-speed internet and the widespread availability of broadband connections have made it easier for consumers to access and stream video content. Secondly, the rising disposable income and changing consumer behavior have led to an increased willingness to pay for premium content. Lastly, the proliferation of smartphones and mobile devices has created a new avenue for OTT Video providers to reach consumers on-the-go. Overall, the OTT Video market in Europe is evolving to meet the changing needs and preferences of consumers. With the rise of local players, advancements in technology, and the diverse nature of the market, the industry is poised for further growth in the coming years.

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.