OTT Video - Taiwan | Statista Market Forecast

In Taiwan, revenue in the OTT Video market market is projected to reach US$1.20bn in 2024.
Revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 5.29%, leading to a projected market volume of US$1.55bn by 2029.
The largest market within this market in Taiwan is OTT Video Advertising, with a market volume of US$744.60m 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 the OTT Video market market in Taiwan, the number of users is anticipated to amount to 22.9m users by 2029.
User penetration in Taiwan will be 81.2% in 2024 and is expected to reach 95.1% by 2029.
The average revenue per user (ARPU) in the OTT Video market market in Taiwan is projected to be US$61.70 in 2024.
In Taiwan, the OTT video market is experiencing significant growth as consumers increasingly favor on-demand content over traditional broadcasting options.

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 Taiwan is experiencing significant growth and development, driven by changing customer preferences and local special circumstances.

Customer preferences: Taiwanese customers are increasingly turning to OTT Video platforms for their entertainment needs. This shift in preference can be attributed to several factors. Firstly, the convenience and flexibility offered by OTT Video platforms allow users to access a wide range of content anytime, anywhere. This is particularly appealing to the busy and tech-savvy Taiwanese population. Additionally, the ability to personalize content recommendations based on individual preferences enhances the overall user experience and keeps customers engaged.

Trends in the market: One of the key trends in the OTT Video market in Taiwan is the growing demand for local content. Taiwanese viewers are showing a strong preference for content that reflects their own culture and language. This has led to an increase in the production and distribution of local TV shows, movies, and documentaries on OTT platforms. Furthermore, the rise of Taiwanese celebrities and influencers has also contributed to the popularity of local content, as viewers are eager to follow the latest trends and news within their own country. Another trend in the market is the emergence of niche OTT Video platforms catering to specific interests and demographics. These platforms focus on delivering specialized content such as sports, documentaries, or children's programming. By targeting specific segments of the market, these platforms are able to provide a more tailored and personalized experience to their users, which in turn increases customer satisfaction and loyalty.

Local special circumstances: Taiwan has a highly competitive media landscape, with strong local players and international giants vying for market share. This competitive environment has led to continuous innovation and improvement in the OTT Video market. Local players are investing heavily in the development of original content and user-friendly interfaces to attract and retain customers. At the same time, international players are expanding their presence in Taiwan, leveraging their global content libraries and brand recognition to gain a foothold in the market.

Underlying macroeconomic factors: The strong economic growth and increasing disposable income in Taiwan have also contributed to the development of the OTT Video market. As consumers become more affluent, they are willing to spend on premium content and services. Additionally, the widespread availability of high-speed internet and the proliferation of smartphones have made it easier for users to access and stream OTT Video content. These factors have created a favorable environment for the growth of the OTT Video market in Taiwan. In conclusion, the OTT Video market in Taiwan is witnessing remarkable growth and development. Changing customer preferences, such as the demand for local content and niche offerings, are driving this growth. The competitive media landscape and favorable macroeconomic factors further contribute to the expansion of the market. As the market continues to evolve, it is expected that OTT Video platforms in Taiwan will continue to innovate and adapt to meet the changing needs and preferences of their customers.

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.