Online Video Streaming and Entertainment Service Market 2031

Report Description

The global online video streaming and entertainment services market size was USD XX Bn in 2022 and is likely to reach USD XX Bn by 2031, expanding at a CAGR of XX% during 2023 – 2031. The market growth is attributed to the increasing demand for high-quality video content and the surge in live streaming through social media.

The increasing number of smartphone users coupled with high-speed internet services is resulting in the higher adoption of online video entertainment solutions. The importance of video streaming and entertainment lies in its ability to deliver high-quality video content over a wide range of networks. 

• For instance, the average weekly time of video streaming increased by 18% between 2021 to 2022. The US population spends around 169.4 billion minutes on video streaming each year. Moreover, it is estimated that about 78% of American households are having at least one or more than one subscription to streaming services.

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Online video streaming refers to the transmission of digital content in the form of multimedia from a source to multiple destinations through the Internet. Video streaming is widely used for the dissemination of video programs such as TV shows, movies, and other videos via various digital networks.

Online video streaming allows viewers to watch videos in high-quality without downloading them. Webcasts, podcasts, TV shows, music videos, and movies are widely consumed forms of entertainment on streaming video services or platforms. High audio and video quality, instant playback, instant viewing, no need for storage space, and streaming options are prominent features of online video streaming and entertainment services.

The emergence of new features to enhance the consumers’ experience contributes to market expansion. Thus, several streaming platforms are introducing innovative features to stand out in the market.

• For instance, on September 13, 2022, YouTube introduced a new ad-free video player for educational content. This feature removed ads, video recommendations, and external links to avoid distractions and change the platform into an educational app.

The COVID-19 pandemic positively impacted the online video streaming and entertainment services market. The pandemic has accelerated digital transformation globally, due to the rising adoption of work-from-home, online learning, and remote patient monitoring. Moreover, the usage of live streaming platforms such as Netflix, YouTube, and Amazon Prime Video has raised to stay entertained, which propelled the market.

• As per findings by Verizon Report, streaming traffic surged globally by about 26% during the pandemic. This surge was primarily for online video entertainment services.

Online Video Streaming and Entertainment Services Market Dynamics

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Major Drivers

Increasing consumption of digital media across several industries is expected to drive the market in the coming years. Digital media has significantly raised the inclination toward various streaming solutions.

In the education & academic sector, it is used to enhance the learning process, as students can easily retain information through webinars and visual recordings of courses. Therefore, schools & colleges are creating digital content and delivering it in the form of video presentations to impart knowledge effectively.

Rising usage of cloud-based services to increase video content reach is another major factor driving the market. Cloud computing in video streaming delivers a high-quality digital experience by offering superior-quality of video, security, and performance. Furthermore, the growing popularity of over-the-top (OTT) content delivery models and the increasing reliance on smartphones coupled with internet penetration activities are likely to boost the market.

• For instance, the worldwide audience of OTT video streaming services is expected to increase by 709 million individuals between 2023 to 2027.

Existing Restraints

Video streaming requires a reliable network, which may restrain the market to a certain limit. A poor internet connection can cause several issues, including lagging issues. Furthermore, content protection, privacy issues, and the lack of authentication in providing legalized access are likely to hamper the market.

Emerging Opportunities

The emergence of artificial intelligence and blockchain technology in video streaming is anticipated to create lucrative opportunities in the market. AI plays a crucial role in identifying trends and patterns of users’ behavior and provides users with personalized movie suggestions. It helps in editing, voice-overs, and in film production. Many video streaming service providers use AI to enhance the quality of videos.

• For instance, on June 9, 2021, Xfinite, a global blockchain technology platform, and Eros Now, an Indian subscription-based OTT and media platform service, entered into a partnership for creating a blockchain-based content engagement program. This partnership Eros Now to build its core subscription video-on-demand service.

Scope of Online Video Streaming and Entertainment Services Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Online Video Streaming and Entertainment Services Market Segment Insights

Component Segment Analysis

On the basis of component, the online video streaming and entertainment services market is bifurcated into content delivery services and software.

The service segment is further trifurcated into consulting, training & support, and managed services. The software segment is expected to register a robust growth rate during the assessment period, as it monitors and analyzes video stream content in real-time. It provides valuable insights into viewer engagement and behavior.

Moreover, it allows content creators to enhance engagement by tracking the number of viewers and duration of views. The rising development of advanced streaming platforms is further likely to boost the segment.

The service segment is anticipated to gain a significant share of the market in the coming years, due to the rapid developments in content delivery networks (CDN) that enable the efficient delivery of content. Managed services combine OTT solutions and broadcasts in one solution to provide customized experiences to viewers.

Whereas, managed services provide highly developed media services to viewers, which helps them to attain better quality content by managing streaming-related services and OTT platforms.

Type Segment Analysis

In terms of type, the market is divided into live video streaming, non-linear video streaming, and video on demand.

The live video streaming segment is projected to expand at a considerable CAGR during the projection period, as it allows users to view live video without downloading the entire file. This type of streaming is used for events, such as breaking news and sports. The ability of live streaming to engage with viewers in real time is further likely to boost the segment.

The video on demand segment is anticipated to grow at a rapid pace, due to the rising adoption of OTT platforms. Video on demand is pre-recorded videos, such as movies, web series, and TV shows that can be watched anytime. Increasing subscriptions to online video services is further likely to propel the segment. As per the Motion Picture Association, online video streaming services subscriptions exceeded 1.1 billion globally in 2020, a 26% increase over the previous year.

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Platform Segment Analysis

Based on platform, the online video streaming and entertainment service market is segmented into smartphones & tablets, gaming consoles, smart TVs, and laptops & desktops.

The smartphones and tablets segment held a large share of the market in 2020 and is expected to grow at a significant growth rate during the forecast period, owing to the rising preference of viewers to watch videos remotely and increasing mobile subscriptions.

Smartphones have the ability to stream hassle-free live streaming. Smartphones & tablets are highly preferred for viewing content due to their portability and remote access. The segment growth is further attributed to the rising penetration of smartphones and easy access to the internet.

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Vertical Segment Analysis

On the basis of vertical, the market is categorized into e-learning/education, entertainment & music, gaming, healthcare, esports/sports, fitness & lifestyle, and others.

The esports/sports segment is expected to expand at a significant growth rate during the projection period, as online video streaming allows players to stream or broadcast their games. The rising usage of esports platforms is further likely to contribute to segment growth. The segment growth is further attributed to the increasing popularity of video game streaming.

• For instance, in 2021, Twitch was the majorly used video game streaming platform in the US. Around 47% of gamers used Twitch to watch game streaming. Moreover, over 40% of gamers used YouTube to watch video game streams.

The healthcare segment is anticipated to hold a key market share during the assessment period, owing to a surge in online consultations through video interaction mediums. Interactive live-streaming webinars and online live videos are used by medical practitioners for discussing specific cases and for patient consultations.

Regional Analysis

In terms of region, the global online video streaming and entertainment services market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.

North America holds a key share of the market in 2022 and is projected to dominate the market in the coming years, due to the large population watching online content. Moreover, the presence of prominent players such as Netflix, Amazon, and Microsoft and the growing technological advancement at a rapid pace is likely to fuel the market in the region.

On the other hand, the market in Asia Pacific is expected to grow quickly, due to the growing number of users of online video gaming and the rising popularity of OTT platforms. For instance, as of now, China has the largest number of video streaming users with 381.77 million individual users, while India is the second highest in the Asia Pacific region with 67.85 million users.

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