The number of video streamers has increased significantly in recent years, owing to the surging penetration of the internet, who are not generating the bulk of the internet traffic. Due of the rising number of video streamers, the video streaming market is projected to showcase a growth of 19.1% during the forecast period (2019–2024). The market was valued at $245.3 billion in 2018, which is expected to reach $688.7 billion by 2024.
Video contents are available on multiple platforms and can be availed through subscription, retail, rental, and advertisement. In recent years, the subscription model of video streaming has witnessed a significant rise. For example, Netflix registered around 167 million subscribers in 2019. Over the years, the over the top (OTT) platforms have emerged as the largest service providers for video contents. Other leading OTT platforms include Amazon Prime Video, HBO Now, YouTube/YouTube Red, Apple TV+, and Disney+Hotstar.
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| Video Streaming Market Analysis and Demand Forecast Report |
The various devices for video streaming are smart TVs, smartphones, tablets, laptops, and desktops. Among these, most of the video streaming users still prefer TVs over other devices. Viewers across the world use several approaches, such as connected laptops, smart TV applications, and gaming consoles, to watch non-linear contents on their TV sets. However, the younger generation, especially the ones between 15 and 35 years of age, prefers smartphones and tablets over TVs to watch video contents, as these devices offer them the choice to watch from anywhere and at any time, according to their preference.
Currently, North America hosts the maximum number of consumers of video contents. This is ascribed to the easy availability of videos on the internet and increasing broadband connectivity and internet speed. Additionally, the availability of customized and efficient contents has increased the practice of video streaming. By the end of 2019, the number of subscribers for Netflix and Apple TV+ in the U.S. stood at around 106.1 million and 33.6 million, respectively.
According to P&S Intelligence, the Asia-Pacific (APAC) video streaming market is expected to display the fastest growth in the forecast period, owing to the rising adoption of smartphones and penetration of the internet. Moreover, the increased internet speed and broadband connectivity will rise video streaming in the region. Additionally, the surging adoption of smart devices, such as laptops, smart TVs, tablets, and smartphones, coupled with improved telecommunications infrastructure and decreasing data costs will increase the practice of video streaming.
Some of the leading providers of video contents are Alphabet Inc., Netflix Inc., British Broadcasting Company, AT&T Inc., Amazon.com Inc., and The Walt Disney Company. These companies are opting for partnerships to expand their consumer base. For example, Amazon.com Inc., in March 2019, partnered with Tigo, a telecommunications company based in Luxemburg, to provide the Tigo's customers with Amazon Prime Video streaming services. Under this partnership agreement, Tigo would provide its customers with free subscription of Amazon Prime for the first three months and subsidized subscription for the next few months.
Thus, the emergence of several OTT platforms, surging adoption of smartphones, and increasing penetration of the internet are expected to modify the video streaming process. Additionally, the increasing penetration of devices, such as smart TVs, will increase the number of video streaming users.
