Solid growth is being predicted for the online video platform market, with an expected CAGR exceeding 18% through 2022.
Market research firm Technavio posits that brands and enterprise segments – which represented 35% of the market in 2017 – will continue to be significant contributors to growth.
But the major driver of growth remains accelerated adoption of online video viewing by consumers, something several other reports in recent weeks also have noted.
Zenith, for example, this month said online usage is continuing to increase and said total time spent on the Internet will exceed total time spent watching traditional TV sometime in 2019. Zenith predicts consumers will spend 170.6 minutes a day on the Internet compared to 170.3 minutes watching TV. A year ago, Zenith had said it expected TV to remain dominant in 2019. It expects global ad spend on the Internet to be $60 billion more than on television next year. And, it said, global mobile ad spend will increase to 30.5% by 2022 from 19.2% in 2017, reaching a total spend of $187 billion on mobile.
OTT has been especially well received in the United States, according to Parks Associates, which reported some 40% of U.S. broadband households now subscribe to at least two OTT services, and more than 60% have at least one SVOD service.
“The online video content has expanded from being a mere source of entertainment to becoming a reliable source of information, skill-sharing, education and advertisement,” the Technavio report said, which has led to “a rapid increase in investments in this sector.”
Technavio also called out livestreaming as a crucial emerging trend.
“It is expected that live-streaming of videos will surpass the 80% mark of internet traffic by 2021,” the firm said. “As live streaming adds unique elements to digital communication, brands are making use of this feature to provide online tutorials, product launches, news and politics, and regular series. Brands are engaging in micropayments, mid-roll advertising and social platform payment to monetize live streaming of videos.”
Globally, sports also have begun to play a major role in the increase of live streaming.