The world of OTT is changing at a rapid pace, almost as fast as it takes for you to download a movie in Singapore. To help you keep up with it all, we’ve put together some major linear TV & OTT statistics. We’ll start off with a quick overview of the industry, how much money is being spent and made, and who’s behind the screens.
Whether you’re a seasoned in OTT services or are aspiring to build a back-end system like what Netflix has, here are some quick stats about the OTT industry you should know.
Fast Facts About OTT
The OTT industry is exceeding expectations according to Magna EVP of Market Intelligence, Vincent Letang, who stated that the “...penetration and consumption of OTT homes in the US grew faster than we thought.” What’s also interesting is that more than half of the U.S. uses some type of OTT service across all ages and that number is only predicted to grow significantly. One thing to note here is the use of multiple devices to consume this content which means leaders must use analytics and know where to provide the content on the devices most popular with their customers.
There are over 200 OTT providers in the U.S. ( Digiday)
As of 2019, there are 182 million OTT subscription video service users in the U.S. ( eMarketer)
The top five OTT services by number of subscribers are ( Adweek):
Amazon Prime Video Users
The U.S. has over 820 million connected video devices ( Video Advertising Bureau - VBA)
71% of internet users also use OTT services (VBA)
47% of US Wi-Fi households own a streaming box/stick ( Marketing Charts)
On average, 49% of internet users use an online video subscription or a network tv app at least once a week (VBA)
OTT users access video content on three devices across three different OTT services on average ( OpenX)
According to eMarketer, 55.1 million people will no longer watch traditional pay TV by 2022
The Financials of OTT
Money is to be made and spent in OTT. While there is some apprehension around how many OTT services can realistically coexist, as we just covered, consumers are craving more content across several devices. This demand is pushing OTT services to spend more, but with the potential to reap some major financial benefits.
Netflix is considered the top spender in OTT content, having budgeted $8 billion for content in 2018 ( Digiday)
Facebook will pay up to $3 million per 30-minute episode for premium content for Watch ( Digiday)
Global OTT revenues are predicted to reach $129 billion by 2023 and $47.8 billion in the U.S. ( Multichannel)
OTT ad spend is predicted to grow by 31% or $5 billion by 2020 ( AdExchanger)
OTT Statistics - Programming
Original content is king for OTT services. This makes the need to invest in a single, easy-to-use video platform for distributing and monetizing OTT content, much more important. Content production is also only predicted to increase over the years. Organization of content both on the users end and back-end system will be of the most utmost important and should be a priority.
The most viewed content on Netflix and Amazon Prime are recent movies, while the top type of content viewed on Hulu is a network TV series (VBA)
The number streamed show in 2018 was Netflix’s “13 Reasons Why” (Forbes)
New OTT service contender, Disney Plus, will offer the lowest subscription fee at just $7 a month
Nearly 500 scripted shows were created for streaming services in 2018, surpassing basic cable and broadcast ( Medium)
OTT Statistics - Consumer Behavior
It might not come as a surprise that the largest consumers of OTT services are Millennials and Generation Z. And it definitely shouldn’t be surprising to see dropping viewing time of traditional TV, especially among these age groups. In general, women and men tend to be equal in viewership, but women slightly have the upper hand.
Millennials spend about 7 hours a day watching videos on their phones
Half of US adults over 18 use at least one OTT service ( OpenX)
While watching a program, two out of every three people use a second screen to look up information about a product they saw during that program ( Adweek)
33% of people watch online videos on a Smart TV, with video-enabled apps as compared to 23% who use a video game console ( Statista)
Viewing time of traditional TV has dropped, with 18-24 year olds representing the largest decrease of just 25 minutes per day ( MarketingCharts)
Millennial parents are more likely to use live TV, averaging around 3 hours and 16 minutes of watch time per day; in contrast to childless and independent Millennials who spend the most time (1 hour and 32 minutes) using a TV-connected device (MarketingCharts)
When it comes to gender, women slightly watch programs more by using connected devices (70% vs. 62%) and VOD (66% vs. 64%) than men ( Nielsen)
Have more questions about OTT statistics or the overall OTT industry?
Let the Zype team guide you to what you’re looking for in OTT services. With Zype, you’ll be able to manage your video business from a single dashboard that provides content ingestion, transcoding, VOD & live streaming, app distribution, publishing and monetization. Zype has built or maintains 155 customer OTT apps in the market today.