OTT Video - Northern Africa | Statista Market Forecast

Revenue in the OTT Video market market in Northern Africa is projected to reach US$1.20bn in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 8.30%, leading to a projected market volume of US$1.78bn by 2029.
The largest market within this market is Video Streaming (SVoD), anticipated to have a market volume of US$804.10m 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.
Within Northern Africa's OTT Video market market, the number of users is expected to total 139.5m users by 2029.
User penetration in this region will be 41.6% in 2024, with expectations to increase to 49.6% by 2029.
The average revenue per user (ARPU) in Northern Africa's OTT Video market market is projected to be US$11.01 in 2024.
In Northern Africa, the OTT video market is experiencing rapid growth, driven by increasing internet penetration and a rising demand for localized 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 Northern Africa has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances. Customer preferences in Northern Africa have shifted towards consuming video content online, with a growing demand for on-demand and streaming services. This can be attributed to the increasing availability of high-speed internet connections, affordable smartphones, and the convenience of accessing content anytime, anywhere. As a result, consumers are increasingly opting for OTT Video platforms that offer a wide range of content, including movies, TV shows, and original programming. Trends in the market indicate a growing competition among OTT Video providers in Northern Africa. International players such as Netflix and Amazon Prime Video have entered the market, offering a diverse selection of content to attract subscribers. At the same time, local players have also emerged, catering to the specific preferences and cultural nuances of the region. These local providers often offer content in Arabic and focus on regional programming, which resonates well with the local audience. Local special circumstances in Northern Africa have also contributed to the development of the OTT Video market. The region has a large youth population, who are early adopters of new technologies and avid consumers of digital content. Additionally, the prevalence of piracy in the region has led to a growing demand for legal and affordable alternatives, making OTT Video platforms an attractive option for consumers. Underlying macroeconomic factors have also played a role in the growth of the OTT Video market in Northern Africa. The region has witnessed economic growth and increased disposable income, allowing more consumers to afford subscription-based video streaming services. Furthermore, governments in the region have been investing in infrastructure development, including the expansion of broadband networks, which has improved internet connectivity and made online video streaming more accessible. In conclusion, the OTT Video market in Northern Africa is developing rapidly due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. As more consumers in the region embrace online video streaming, the market is expected to continue its growth trajectory 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.