OTT Video - NAFTA | Statista Market Forecast

In NAFTA, revenue in the OTT Video market market is projected to reach US$143.10bn in 2024.
This revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 7.66%, leading to a projected market volume of US$207.00bn by 2029.
The largest market within this market is OTT Video Advertising, which is anticipated to have a market volume of US$91.12bn in 2024.
In a global context, the United States will generate the majority of revenue, with an expected total of US$133.70bn in 2024.
Within the OTT Video market market in NAFTA, the number of users is projected to reach 394.1m users by 2029.
User penetration is expected to be 70.9% in 2024 and is projected to increase to 75.1% by 2029.
Furthermore, the average revenue per user (ARPU) in the OTT Video market market is expected to amount to US$395.50 in 2024.
As the U.S. leads in OTT video consumption, platforms are increasingly prioritizing original content to capture the evolving preferences of American audiences.

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 NAFTA is experiencing significant growth and development. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to this growth. Customer preferences in the NAFTA region are shifting towards streaming services and on-demand content. Consumers are increasingly seeking convenience and flexibility in their entertainment options, and OTT Video platforms offer just that. The ability to access a wide range of content anytime, anywhere, and on any device is highly appealing to customers. Additionally, the availability of personalized recommendations and the ability to binge-watch entire seasons of TV shows have further fueled the popularity of OTT Video services. Trends in the market indicate a strong demand for original content. Streaming platforms are investing heavily in producing their own exclusive TV shows and movies to attract and retain subscribers. This trend has led to increased competition among OTT Video providers, as they strive to differentiate themselves through unique and compelling content offerings. Furthermore, the rise of live streaming and sports streaming services has also contributed to the growth of the OTT Video market in NAFTA. Local special circumstances in the NAFTA region also play a role in the development of the OTT Video market. The region consists of three countries - the United States, Canada, and Mexico - each with its own unique characteristics. The United States, being the largest economy in the region, has a highly developed OTT Video market with a wide range of providers and a large customer base. Canada, on the other hand, has a smaller population but a high internet penetration rate, making it an attractive market for OTT Video companies. Mexico, with its growing middle class and increasing internet access, presents significant growth opportunities for OTT Video providers. Underlying macroeconomic factors such as increasing internet penetration, improving infrastructure, and rising disposable incomes also contribute to the growth of the OTT Video market in NAFTA. These factors enable more people to access and afford OTT Video services, driving the demand for these platforms. Additionally, the COVID-19 pandemic has further accelerated the adoption of OTT Video services, as people spend more time at home and seek entertainment options online. In conclusion, the OTT Video market in NAFTA is experiencing significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The shift towards streaming services, the demand for original content, and the availability of personalized recommendations are driving the popularity of OTT Video platforms. The unique characteristics of each country in the region, along with increasing internet penetration and rising disposable incomes, further contribute to the growth 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.