OTT Video - United Kingdom | Statista Market Forecast

In the United Kingdom, revenue in the OTT Video market market is projected to reach US$15.95bn in 2024.
Revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 4.48%, leading to a projected market volume of US$19.86bn by 2029.
The dominant market in the UK is OTT Video Advertising, with a market volume of US$9.71bn anticipated for 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, the number of users in the UK is projected to amount to 59.0m users by 2029.
User penetration is forecasted to be 83.9% in 2024, increasing to 85.5% by 2029.
The average revenue per user (ARPU) in the OTT Video market market within the UK is projected to reach US$279.70 in 2024.
The usage share of Disney+ is estimated to constitute 14.0% of the Videostreaming (SVoD) market in the selected region for 2023.
In the United Kingdom, the OTT video market is increasingly characterized by a surge in localized content production, catering to diverse audience preferences.

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 United Kingdom is experiencing significant growth and development.

Customer preferences: Customers in United Kingdom have shown a strong preference for OTT Video services due to the convenience and flexibility they offer. With the increasing availability of high-speed internet and the proliferation of smart devices, consumers are increasingly turning to OTT platforms to access their favorite movies, TV shows, and other video content. The ability to stream content on-demand and across multiple devices has become a key factor driving the adoption of OTT Video services in the country. Additionally, the wide range of content available on these platforms, including original programming and exclusive deals with major studios, has further attracted consumers.

Trends in the market: One of the key trends in the OTT Video market in United Kingdom is the rise of subscription-based models. Many OTT platforms in the country offer subscription plans that provide unlimited access to a vast library of content for a fixed monthly fee. This model has gained popularity among consumers who prefer the convenience of paying a single fee and having access to a wide range of content without any additional costs. Furthermore, the increasing number of OTT platforms entering the market has led to intense competition, resulting in a wide variety of subscription options for consumers to choose from. Another trend in the market is the increasing popularity of OTT Video services among younger demographics. Younger consumers in United Kingdom are more likely to be early adopters of new technologies and are increasingly relying on OTT platforms for their entertainment needs. This trend is driven by factors such as the affordability of OTT services compared to traditional cable or satellite TV subscriptions, as well as the ability to access content on-the-go through mobile devices.

Local special circumstances: The OTT Video market in United Kingdom is influenced by several local special circumstances. The country has a strong tradition of television and film production, with a rich history of content creation. This has led to the availability of a wide range of high-quality content on OTT platforms, including popular British TV shows and movies. The presence of local content has played a significant role in attracting consumers to these platforms. Furthermore, the regulatory environment in United Kingdom has also shaped the development of the OTT Video market. The country has implemented regulations to ensure that OTT platforms adhere to certain standards, such as age ratings and content classification. This has helped to build consumer trust and confidence in the OTT Video market, as consumers know that the content they are accessing is regulated and meets certain quality standards.

Underlying macroeconomic factors: The growth of the OTT Video market in United Kingdom can be attributed to several underlying macroeconomic factors. The country has a strong economy and a high level of disposable income, which enables consumers to spend on entertainment services such as OTT Video. Additionally, the increasing penetration of high-speed internet and the widespread adoption of smart devices have created a favorable environment for the growth of the OTT Video market. Overall, the OTT Video market in United Kingdom is experiencing significant growth and development, driven by customer preferences for convenience and flexibility, the rise of subscription-based models, the popularity among younger demographics, local special circumstances such as the availability of high-quality content and regulatory standards, and underlying macroeconomic factors such as a strong economy and high levels of disposable income.

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.