Video technology has evolved over the years, and people are increasingly consuming more and more video content. Cisco went so far as to predict that by 2021, videos would constitute about 80% of the entire internet traffic.
The pandemic caused mass disruption worldwide. With sporting events, theaters, and other public venues shut down, people were forced to stay indoors and consume entertainment and different media types through over-the-top (OTT) services. Not surprisingly, these providers saw significant growth during the lockdown. Despite the slow return to normal, this growth will continue for years to come.
When you think about online and streaming video, you probably first think of YouTube. And yet, there are other platforms now being used for video marketing and presentation purposes, including Facebook and Instagram stories, Snapchat, and more. The reason this is happening is apparent: the market is enormous.
When it comes to video files, higher-quality videos are much larger in size than lower-quality ones. Uploading and hosting these high-quality videos becomes a challenge due to several bandwidth constraints and the high upload time. And when your viewers watch these videos, if they're not on a high-speed connection, the video keeps buffering at their end, resulting in an unpleasant viewing experience.
For some musicians, live streaming was a way of life long before a global pandemic dictated that it should be the main way live music is heard. But since COVID-19 grounded tours for more than a year, live streaming has leveled up.
2021 is definitely a “video” year. Online video platform usage is up in nearly every corner of the world. And the demand for online content is not abating any time soon. The OTT market alone is projected to top $1,039 billion by 2027.
Live streaming is no longer a fad. It’s a long-term trend, and going stronger year-over-year. From sports matches to educational programming, consumers flock to popular video live streaming platforms for an after-work wind-down. This foray is getting grand. By 2027, the global live streaming market will tally at $184 billion.
SVOD or Subscription Video on Demand is one of the three popular revenue generation models for OTT platforms. In this form of video monetization, you typically charge a fixed fee monthly or yearly to give customers access to your video content.
The coronavirus pandemic has taught us that life is unpredictable. There's no certainty as to what will happen in the future, and yet, one thing is certain, as Juniper Research reports— OTT subscriptions will reach two billion by the end of 2025. This amounts to a value of around USD 194.2 billion, almost 13.87% more than its estimated value of USD 85.16 billion in 2019.
In 2019, the size of the global over-the-top market was valued at $56 billion. From 2020 through 2027, growth in that market is expected to hit 18.6%. This means OTT streaming services revenue will have more than tripled in 10 years (since 2017). This is not to mention other applications of OTT, like voice over IP or internet text communication.