According to a recent analysis UK analysis firm Digital TV Research, global revenue from over-the-top (OTT) services is projected to reach $215 billion in 2029, representing a 33% increase from $162 billion in 2023. The United States is expected to maintain its dominance in the global market, accounting for 38% of the revenue 2029, although this represents a decrease from 46% in 2023.
Digital TV Research forecasts that US revenue from OTT services will rise $8 billion between 2023 and 2029, reaching $82 billion. Within the US market, subscription video on demand (SVoD) services are projected to generate $54.6 billion in revenue in 2029, while advertising-supported video on demand (AVoD) services are expected to contribute $21.6 billion.
In China, SVoD and AVoD services are predicted to generate $9.6 billion and $7.4 billion in revenue respectively. The rental market within the OTT sector is projected to earn $9.7 billion in 2029, with download-to-own (DTO) bringing in $9.2 billion.
SVoD will remain the primary revenue source for OTT services globally, experiencing a growth of $19 billion between 2023 and 2029, reaching $127 billion. However, the analysis from Digital TV Research suggests that AVoD revenue will grow at a faster rate compared to SVoD. The company highlights that AVoD revenue for TV series and movies is expected to reach $69 billion 2029, a $30 billion increase from $39 billion in 2023.
Simon Murray, principal analyst at Digital TV Research, explains that these figures are lower than their previous edition due to a global advertising slowdown and slower-than-expected rollouts of hybrid AVoD-SVoD platforms major US platforms.
Overall, the outlook for the OTT market appears promising, with substantial growth projected in the coming years. The increase in subscription and advertising revenues demonstrates the ongoing popularity and demand for digital streaming services, suggesting that OTT platforms will continue to reshape the entertainment landscape.
Sources: Digital TV Research.