From amassing $245.3 billion in 2018, the global video streaming market is predicted to reach $688.7 billion by 2024, advancing at a 19.1% compound annual growth rate [CAGR], according to Research and Markets (www.researchandmarkets.com)
The research group says that factors positively influencing the market growth are the rising popularity of video streaming in developing nations, growing internet connectivity, and the rising popularity of social media platforms. The accessing of the on-demand or live viewing of the content as per a consumer’s preference is termed as video streaming. This has been categorized into different services, including over-the-top (OTT), pay TV, and internet protocol TV (IPTV).
The categories of the video streaming market based on offering are service and solution. Between the two, in 2018, the higher revenue share of 94.6% was contributed by the solution category. Along with being extremely popular in the entertainment sector, video streaming solutions have become an important component for sales, marketing, business development, and corporate communications.
Research and Markets says this has resulted in their wide applications for personal as well as professional use. The solution category is further subcategorized into IPTV, OTT, and pay TV; among which the fastest growing subcategory is the OTT.
The video streaming market is witnessing the trend of the shift toward the OTT platform, per Research and Markets. It has been observed that in countries, such as the U.S., more than 150 million people have opted for OTT services, whereas more than 180 million people, use smart TVs.
What’s more, people are opting for personalized content, which is pushing companies to offer high-margin visual entertainment by offering users bundled services. The rising popularity of OTT can be correlated to the rising consumer preference for specific content and better connection reliability offered by the service providers, says Research and Markets.
One of the major drivers of the video streaming market are the surging popularity of social media platforms, which can be credited to the improved access to the internet and connectivity, adds the research group. For instance, an explosive growth of 99% was exhibited by the video content on media platforms, such as YouTube in 2017. Further, these platforms are now increasingly being used as an advertisement revenue model for generating income. Based on this model, YouTube has generated the maximum revenue, which is closely followed by Facebook Inc.
Research and Markets says the video streaming market can maximize its revenue by venturing into the education sector. With an enthusiastic response from students and learners, education institutes and third-party vendors are coming with numerous massive open online courses (MOOC). In 2018, the total number of students enrolled in such courses reached 101 million. Some of the major companies offering MOOC are edX, Coursera, Udacity, FutureLearn, and XuetangX. An increase of $40 million to the revenue was registered by Coursera in 2018. Currently, the largest market for online courses is North America.
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