OTT Video - GCC | Statista Market Forecast

Revenue in the OTT Video market market in the GCC is projected to reach US$1.35bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.17%, resulting in a projected market volume of US$1.82bn by 2029.
The largest market within this market in the GCC is OTT Video Advertising, which will have a market volume of US$772.90m in 2024.
In a global context, the highest revenue will be generated the United States, estimated at US$133.70bn in 2024.
Within the OTT Video market market in the GCC, the number of users is expected to amount to 48.8m users by 2029.
User penetration in the GCC will be 68.0% in 2024 and is anticipated to rise to 76.3% by 2029.
The average revenue per user (ARPU) in the OTT Video market market in the GCC is projected to amount to US$32.91 in 2024.
In the GCC region, the OTT video market is witnessing a surge in localized content production, reflecting the diverse cultural narratives of its 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 GCC is witnessing significant growth and development due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the GCC region are shifting towards on-demand content consumption, with viewers increasingly opting for personalized and flexible viewing experiences. This is driven by the convenience and accessibility offered by OTT platforms, which allow users to stream their favorite movies, TV shows, and other video content anytime and anywhere. Additionally, the growing popularity of mobile devices and high-speed internet connectivity has further fueled the demand for OTT video services in the region. Trends in the market indicate a rise in subscription-based models, as consumers prefer ad-free streaming experiences. This has led to the emergence of various OTT platforms offering premium content libraries and exclusive original productions. Furthermore, the demand for localized content in the GCC region has prompted OTT providers to focus on producing and acquiring content that caters to the preferences and cultural nuances of the local audience. This includes Arabic-language content, as well as content from neighboring countries in the Middle East. Local special circumstances play a significant role in shaping the OTT Video market in the GCC. The region has a large expatriate population, with individuals from diverse backgrounds and cultures. This has resulted in a demand for international content, including movies and TV shows from different parts of the world. OTT platforms have capitalized on this demand by offering a wide range of content options, catering to the multicultural audience in the region. Underlying macroeconomic factors, such as increasing disposable incomes and urbanization, have also contributed to the growth of the OTT Video market in the GCC. As the standard of living improves and more people move to urban areas, there is a greater adoption of digital technologies and internet-based services. This, coupled with the relatively young population in the region, presents a lucrative market for OTT video providers to tap into. In conclusion, the OTT Video market in the GCC is experiencing rapid growth and development driven by changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. As viewers in the region increasingly seek personalized and convenient content consumption, OTT platforms are capitalizing on this demand by offering a diverse range of content options and subscription-based models. With the continued expansion of high-speed internet connectivity and the rise of mobile devices, the OTT Video market in the GCC is expected to flourish 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.