OTT Viewership Statistics & Industry Growth Trends (2024)

The rapid evolution of digital media has significantly impacted OTT viewership, making it a dominant force in the entertainment industry. As we move into 2024, understanding OTT trends and market dynamics is crucial for marketers and industry professionals.

This article covers the latest OTT statistics and examines the factors driving growth in the OTT industry.

1. Projected Growth in OTT TV and Video Revenue

In 2023, the OTT TV and video revenue in the United States is projected to hit $74 billion. Forecasts indicate this figure will rise to over $80 billion by 2029.

For advertisers, this growth trend signifies an expanding opportunity in the OTT market, particularly with ad-supported streaming services, which are expected to experience the highest growth rate among all segments.

2. Surge in Global OTT Video Users

The global user base in the OTT video segment is forecasted to grow by nearly 998 million users, a 25.46% increase, between 2024 and 2029. This growth will bring the total number of users to an estimated 4.9 billion by 2029.

This expanding audience offers a significant opportunity to reach a broader, more engaged global market through OTT platforms.

3. Increasing Global Penetration of OTT Video

The penetration rate of the OTT video segment worldwide is expected to rise by 10.4 percentage points from 2024 to 2029, reaching 61.02% by the end of the period. This steady increase highlights the growing adoption of OTT services across the globe.

For advertisers, this trend underscores the expanding reach and influence of streaming, making OTT advertising an increasingly vital channel for engaging a diverse and extensive audience.

4. Rising Consumer Spending on OTT Video Services

In 2021, global consumer spending on OTT video services reached about $73.4 billion. Forecasts suggest that this figure could soar to between $120.5 billion and over $138 billion by 2027.

This increasing consumer investment in OTT services highlights the growing value and importance of implementing a comprehensive OTT advertising strategy for marketing efforts.

5. Dominance of the U.S. in the FAST Market

By 2028, the U.S. is expected to remain the largest free ad-supported streaming TV (FAST) market, valued at $11 billion. In contrast, the UK and Canada, the second and third largest FAST markets, are projected to be worth $512 million and $344 million respectively.

This OTT industry trend indicates a significant concentration of opportunity in the U.S. FAST market, making it a crucial region for targeted advertising strategies.

6. Leading Content Genres on FAST Channels

A 2023 study on global viewer behavior revealed that news was the most-watched genre on free ad-supported TV (FAST) services, accounting for approximately 37% of total viewing hours. Movies followed as the second most-watched genre, though with a significantly lower share of 16%.

This OTT viewership preference for news content suggests a strategic focus on news channels within FAST services could yield higher engagement and visibility.

7. Exponential Growth of the TVOD Market

The global transactional video-on-demand (TVOD) market is projected to surpass $13 billion by 2028, experiencing an annual growth rate of approximately 9% from 2021 to 2028. This exponential growth highlights the increasing consumer preference for pay-per-view content.

The expanding TVOD market presents new opportunities for targeted advertising and strategic partnerships within a rapidly growing segment.

8. Demographics of CTV Viewers

A 2023 survey in the United States found that the majority of connected TV (CTV) viewers were aged 18 to 34, with nearly two-thirds using these OTT devices daily. Additionally, 27% of individuals over 55 years also watched videos via CTVs every day.

For advertisers, these CTV statistics indicate a broad appeal across age groups, emphasizing the importance of tailored advertising strategies to effectively engage both younger and older audiences.

9. Rapid Growth in SVOD Subscriptions

In 138 countries, subscription video-on-demand (SVOD) is rising rapidly, outpacing the growth in the number of subscribers. By 2027, the total number of SVOD subscriptions is expected to reach nearly 1.7 billion.

This OTT trend highlights the expanding reach of SVOD platforms and underscores the increasing importance of integrating advertising efforts within these SVOD models.

10. Increasing Investment in CTV Advertising

In 2023, connected TV advertising spending in the United States was projected to reach $24.6 billion. This trend, which blends the precision of online advertising with the extensive reach of traditional TV ads, enables advertisers to serve tailored, unskippable streaming ads to targeted audiences during their streaming sessions.

At the current growth rate, CTV ad spend is anticipated to soar to $42.4 billion by 2027, highlighting the platform’s increasing importance for advertisers aiming to leverage its unique advantages.

OTT Viewership Statistics & Trends: Final Thoughts

The OTT industry continues to evolve, presenting numerous opportunities for advertisers and marketers. With significant growth in viewership, consumer spending, and advertising investment, understanding OTT trends is essential for staying competitive.

As we move forward, leveraging these insights will be crucial for maximizing the potential of OTT advertising platforms and effectively engaging diverse and expanding audiences.