The global video streaming market was valued at USD 42.6 billion in 2019. It is estimated to grow at a CAGR of 18.4% during the forecast period (2020–2029), owing to the increasing consumer demand, growth in the education sector and rise of social media and entertainment
Innovations such as autonomous vehicles with 5G connectivity with built-in artificial intelligence (AI) and augmented reality (AR) is expected to re-invent modern living. Launch of Disney+ and Netflix has significantly risen the number of subscribers in on-demand streaming. Improvements such as high-definition and ultra-high-definition resolution and 4K display formats are further attracting the audience across the globe.
The number of subscribers of Netflix and Amazon Prime Video has increased remarkably since 2018, with more than 100 million subscribers in the U.S alone. The lockdown situations in most countries due to the 2019 coronavirus has further provided an impetus to the number of online streamers, thereby creating a high market demand
The thriving smart ecosystems, smart wearables, edge computing, and personalization of content are some of the crucial driving factors of the global video streaming market. The extensive adoption rate of cloud-based streaming solutions and the popularity of video games, especially in developing countries such as India and China, is accelerating the video streaming market growth. The integration of advanced technologies and their widespread application in the education and healthcare sectors is further bolstering the market growth. Video solutions are enhancing classroom studies in countries such as Europe and South Korea as well as increasing student engagement
The video streaming service has blown up industry norms by outspending and bidding competitors and mainstream pay-TV players for content and exclusive license agreements. Unevaluated content budgets led to negative cash flows amounting to USD 3 billion for Netflix in 2018. A sudden surge in digital content utilization; for instance, the global crisis of the COVID-19 outbreak has exerted massive pressures on streaming platforms such as Amazon Prime Video, YouTube, Hotstar, Voot, Sony Liv, Viuclip, and, Netflix. The providers are thus urged to lower down the quality of streaming. High-quality video streaming also requires a large bandwidth, a lack of which can heavily impact market growth. For instance, Netflix's streaming service requires an Internet speed of at least 5 Mbps for HD quality, 7 Mbps for "Super HD" quality, and 12 Mbps for 3D streaming. Lack of proper internet connectivity can lead to poor quality and a reduction in video quality in order to ensure uninterrupted playback
IP-based video services are offering high growth opportunities for monetization at scale and niche content. The booming IoT sector is increasing the demand for delivering live content at scale. There is always a scope for new content that will attract audiences and earnings for sure. Implementation of Artificial Intelligence in a wide range of media settings is further evolving and personalizing content
Rising penetration of smartphones has increased the demand for on-demand videos. High-speed internet connectivity, such as 3G/4G and 5G, has further added to the market demand. Digital media has improved consumer access to online content. IoT connected devices have enabled users to view real-time or live streaming of activities. OTT-based solutions deliver film and TV content through the internet without the need to subscribe to a traditional cable or pay-TV services. The rising adoption rate of laptops, tablets, and other handheld devices due to increasing disposable income, better standard of living, and changing lifestyle is anticipated to boost market growth during the forecast period. Technological advancements have led to the development of Smart TV and 4K display technology to offer users ultra high definition content. The rising popularity of gaming has led to the increased demand for gaming consoles with high-resolution display quality for customer engagement.
North America is expected to dominate the global video streaming market. The region accounted for the largest share in the video streaming market in 2017, owing to the collaborations between the governments and network arenas, institutional partnerships between video streaming and research agencies, and large-scale investments in outsourced video streaming solutions and services. The current global pandemic has boosted the market demand generating an upsurge in the streaming hours. Streaming on gaming platform Twitch increased 15% in the last few days. Video game usage grew by 75% in March 2020, in North America, according to Verizon
TV, mobile consumption has witnessed a major spike in Asia amidst COVID-19, with the total daily time spent per viewer jumped from 3 hours 46 minutes in January to 3 hours 51 minutes in March 2020. The TV viewership measurement agency BARC India and global data analytics company Nielsen revealed that in India, people are spending more time on television and mobile devices on account of the lockdown scenarios. TV consumption increased by 8%, and time spent per user on smartphones rose by 6.2% in just one month. TV users increased from 32 million new average daily viewers to 592 million
On March 23rd, 2020, Facebook, along with Youtube, Netflix, and Amazon, announced to temporarily lower streaming quality in Europe. Disney has also announced to reduce strain by lowering bandwidth utilization for its streaming service. Disney+ revealed that online video streaming accounts for over 60% of data transmitted from internet providers to consumers. Other popular providers such as Instagram have also followed a similar path to help alleviate network congestion during the COVID19 crisis
Home video has emerged as highly trendy in the Brazilian market with access to the latest technology smart televisions, internet, and apps. Home audio and cinema systems are enhancing consumer experience and gaming infrastructures in Colombia. Government initiatives to invest in innovation and R&D of high-quality video streaming techniques are expected to propel the market growth during the forecast period.
Netflix in the Middle East is witnessing an overload of viewers amid the global coronavirus outbreak due to which a large number of people staying indoors. The service provider has, therefore, taken a move to decrease the video quality to control the load on its servers. Only movies are streamed in high-definition or ultra-high-definition 4K. The Middle East and Africa have witnessed a massive growth in online users in the last few years due to the infrastructural developments and rise of e-commerce sectors. Smartphone penetration, the emergence of network providers, and the advent of 5G are increasing consumer demand in North Africa. This is also compelling companies to allocate budget to upgrade bandwidths that can offer uninterrupted real-time streaming with high-quality resolution
Some of the most prominent market players in the global video streaming market include Akamai Technologies, Amazon Web Services, Inc., Apple Inc., Cisco Systems, Inc., Google, Kaltura, Inc., Netflix, IBM Corporation (IBM Cloud Video), Wowza Media Systems, LLC, AT&T Intellectual Property, and Hulu