Market Insights Advertising & Media Media TV & Video

OTT Video - Nigeria

Nigeria

Revenue in the OTT Video market market in Nigeria is forecasted to reach US$1,095.00m in 2024.
The revenue is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 8.28%, leading to a projected market volume of US$1,630.00m by 2029.
The largest market is Video Streaming (SVoD) with a market volume of US$913.00m in 2024.
When compared globally, the in the United States is expected to generate the most revenue (US$132,900.00m in 2024).
In the Nigerian OTT Video market market, the number of users is projected to reach 50.1m users by 2029.
User penetration is forecasted to be 15.4% in 2024 and is set to increase to 19.5% by 2029.
The average revenue per user (ARPU) in the OTT Video market market is estimated to be US$31.08 in 2024.
The usage share of YouTube is approximately 38% of the Videostreaming (SVoD) market in the selected region in 2024.
Nigeria's OTT Video market is witnessing a surge in local content production, catering to the diverse cultural preferences of its audience.

Key regions: United Kingdom, Germany, Asia, South Korea, Japan

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Analyst Opinion

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.

Methodology

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.