OTT Video - Nigeria | Statista Market Forecast

In Nigeria, revenue in the OTT Video market market is projected to reach US$1.10bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.39%, resulting in a projected market volume of US$1.64bn by 2029.
The largest market withNigeria's OTT Video market market is Video Streaming (SVoD), which is anticipated to have a market volume of US$913.00m in 2024.
In a global context, the majority of revenue will be generated the United States, which is expected to reach US$133.70bn in 2024.
In Nigeria, the number of users in the OTT Video market market is expected to amount to 50.1m users by 2029.
User penetration in Nigeria will be 15.4% in 2024 and is anticipated to increase to 19.5% by 2029.
The average revenue per user (ARPU) Nigeria's OTT Video market market is projected to amount to US$31.11 in 2024.
The usage share of Netflix is estimated to account for 33.0% of the Videostreaming (SVoD) market in Nigeria for the year 2023.
Nigeria's OTT video market is experiencing significant growth, driven by increasing smartphone penetration and a burgeoning appetite for diverse local 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 Nigeria has witnessed significant growth in recent years, driven by changing customer preferences, technological advancements, and local special circumstances. Customer preferences in Nigeria have shifted towards consuming video content online, as more people have access to affordable smartphones and high-speed internet connections. This has led to a surge in demand for OTT Video platforms, which offer a wide variety of content that can be accessed anytime and anywhere. Nigerian consumers are increasingly looking for convenience and flexibility in their entertainment options, and OTT Video services provide them with the freedom to choose what they want to watch and when they want to watch it. Trends in the Nigerian OTT Video market indicate a growing appetite for local content. Nigerian movies, also known as Nollywood films, have gained popularity not only within the country but also across the African continent. This has led to the emergence of local OTT Video platforms that focus on showcasing Nollywood content, catering to the specific preferences of Nigerian viewers. Additionally, international OTT Video platforms have recognized the potential of the Nigerian market and are investing in producing and acquiring local content to attract and retain Nigerian subscribers. Local special circumstances in Nigeria have played a significant role in the development of the OTT Video market. Nigeria has a large population, with a significant portion of it being young and tech-savvy. This demographic is more likely to adopt and embrace new technologies, including OTT Video platforms. Furthermore, the Nigerian entertainment industry is vibrant and diverse, with a rich cultural heritage. This has contributed to the creation of a wide range of content that appeals to both local and international audiences, making Nigeria an attractive market for OTT Video providers. Underlying macroeconomic factors have also influenced the growth of the OTT Video market in Nigeria. The country has experienced steady economic growth over the years, leading to an increase in disposable income among consumers. This has allowed more people to afford smartphones and internet subscriptions, enabling them to access OTT Video platforms. Additionally, the Nigerian government has made efforts to improve internet infrastructure and reduce the cost of data, making it more accessible to a larger portion of the population. These factors have contributed to the expansion of the OTT Video market in Nigeria. In conclusion, the OTT Video market in Nigeria is developing rapidly due to changing customer preferences, the popularity of local content, local special circumstances, and favorable macroeconomic factors. As more Nigerians embrace online video streaming, the market is expected to continue growing and attracting both local and international players.

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 market. This spending factors in discounts, margins, and taxes.

Modeling approach / market size:

The market 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 market 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 market. 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.