Analysis and Studies - Studies
The Market for Video Streaming Services: an overview
October 23rd 2023
Video streaming services are platforms that allow users to watch videos, TV shows, movies, and other content over the internet. These services have become increasingly popular in recent years, transforming the way we consume digital media. Video streaming services provide on-demand access to a vast library of content. Users can watch videos at their convenience, pausing, rewinding, or fast-forwarding as they like. These platforms offer a wide range of content, including movies, TV series, documentaries, original programming, live sports events, and more. Users can explore diverse genres and styles. Many streaming services operate on a subscription-based model, where users pay a monthly fee for access to the content. Some also offer free, ad-supported versions. Subscribers can often enjoy an ad-free experience. Streaming services produce their original content, often referred to as "exclusive" or "original series." These shows and movies are unique to the platform, attracting subscribers with fresh and high-quality material.
A look at the market
In 2021, the global video streaming market was assessed to be worth approximately USD 375.1 billion. It is projected that this market will experience substantial growth, reaching an estimated value of around USD 1,721.4 billion by the year 2030. This growth is anticipated to be driven by a compounded annual growth rate (CAGR) of 18.45% from 2022 through 2030.
The growing demand for Video on Demand (VoD) streaming services is a driving force behind the expansion of the video streaming market. Increased consumer spending on media and entertainment has led to a surge in global VoD users, which, in turn, has been instrumental in the growth of this industry.
During the COVID-19 pandemic in 2020, online VoD users saw a significant increase, reaching approximately 1.11 billion. Furthermore, in 2020, there was a notable 26% increase in the combined number of online video subscriptions offered by streaming service providers like Netflix Inc. and Disney+ when compared to 2019, resulting in nearly 230 million new subscriptions. This surge in Over-The-Top (OTT) platform customers has created a strong impetus for market expansion.
Additionally, according to research conducted by Deloitte in 2020, the average household in the United States had access to about 2.5 subscription-based video on demand streaming services. As more individuals across the globe subscribe to these services, it continues to foster the growth of this industry.
In 2021, North America commanded a significant 38.6% share of the global video streaming market's revenue. This strong presence was largely attributed to the rapid expansion of cloud-based streaming services in the region. The European market is also expected to exhibit steady growth, primarily driven by the substantial number of people consuming online content in the region. Additionally, the Asia Pacific region is anticipated to experience the highest Compound Annual Growth Rate (CAGR) during the forecast period. This projection is a result of the increasing adoption of mobile devices and tablets, rapid technological advancements, and the growing popularity of online streaming in the region.