OTT Video - United States | Statista Market Forecast

Revenue in the OTT Video market market in the United States is projected to reach US$133.70bn in 2024.
Revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 7.69%, leading to a projected market volume of US$193.60bn by 2029.
The largest market within this market is OTT Video Advertising, which is anticipated to have a market volume of US$85.39bn in 2024.
In a global context, the majority of revenue will be generated the United States, amounting to US$133.70bn in 2024.
Within the OTT Video market market, the number of users the United States is expected to reach 259.8m users by 2029.
User penetration is projected to be 71.0% in 2024 and is expected to increase to 74.1% by 2029.
The average revenue per user (ARPU) the United States OTT Video market market is anticipated to be US$550.60 in 2024.
The usage share of YouTube is estimated to constitute 16.0% of the Videostreaming (SVoD) market in the selected region for 2023.
The United States OTT video market continues to evolve, with a growing emphasis on original content and increased competition among established and emerging platforms.

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 States is experiencing significant growth and development, driven by changing customer preferences and the rise of digital streaming platforms.

Customer preferences: Customers in the United States are increasingly favoring on-demand video streaming services over traditional cable and satellite TV. This shift in preference is driven by several factors, including the convenience and flexibility of streaming services, the wide variety of content available, and the ability to personalize viewing experiences. Additionally, the younger generation is more inclined towards digital platforms, as they are more tech-savvy and have grown up in a digital era.

Trends in the market: One of the key trends in the OTT Video market in the United States is the increasing competition among streaming service providers. Major players such as Netflix, Amazon Prime Video, and Hulu are constantly investing in content creation and acquisition to attract and retain subscribers. This has led to a proliferation of original content, including TV shows, movies, and documentaries, which has further fueled the growth of the market. Moreover, the entry of new players like Disney+ and Apple TV+ has intensified the competition and expanded the options available to consumers. Another trend in the market is the growing popularity of live streaming services. With the rise of social media platforms like Facebook, Instagram, and YouTube, live streaming has become a popular way for individuals and organizations to share real-time content with their audience. This trend has also extended to the OTT Video market, with platforms like Twitch and Periscope gaining popularity among gamers, influencers, and content creators.

Local special circumstances: The United States has a highly developed digital infrastructure, with widespread access to high-speed internet and advanced mobile networks. This has facilitated the growth of the OTT Video market, as consumers can easily stream content on their smartphones, tablets, and smart TVs. Additionally, the United States has a large and diverse population, which provides a vast market for streaming service providers to target.

Underlying macroeconomic factors: The strong economy and high disposable income levels in the United States have contributed to the growth of the OTT Video market. Consumers are willing to spend on subscription services and are increasingly cutting the cord with traditional cable and satellite TV providers. Furthermore, advancements in technology and the increasing affordability of smart devices have made streaming services more accessible to a wider audience. In conclusion, the OTT Video market in the United States is witnessing significant growth and development, driven by changing customer preferences, intense competition among streaming service providers, and the availability of high-speed internet and advanced mobile networks. The market is expected to continue to expand as more consumers embrace digital streaming platforms and as new players enter the market.

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.