Online Video (Global Market)

Internet video and TV, TV sets, Google TV, WebEx technology on smartphones... Consumers may seem to make up most of the growing video user community. However, video growth is not only due to the consumer segment - video is confidently conquering the business sphere, more and more companies are using the concept of social networks, which creates a whole new direction.

Since everything indicates an increase in traffic, the need for intelligent IP networks becomes unprecedented. The challenge for service providers is to provide users with high quality and reliable services, as network reliability and subscriber loyalty are directly linked to business profitability.

2023

The volume of the global digital video content market for the year grew by 9%, to $47.38 billion

In 2023, costs in the global digital video content market reached $47.38 billion. The indicator of the previous year, when expenses in this area were estimated at $43.61 billion, was exceeded by almost 9%. This is stated in the Market Research Future study, the results of which are presented on November 1, 2024.

The digital video content industry is experiencing significant growth, primarily due to increased consumption of materials on various platforms. The proliferation of smartphones and high-speed Internet has made video content more accessible. At the same time, the creation and distribution of such materials is stimulated by the high popularity of social networks. Video on demand services and streaming services make an important contribution to the development of the market: viewers prefer the choice of what to watch, when to watch and how to watch. This trend is further enhanced by mobile devices that enable users to consume video content anytime, anywhere. Plus, mobile streaming through smartphones is rapidly gaining popularity.

Another stimulating factor is technological advances, in particular, the expansion of 5G infrastructure. By significantly increasing data transfer rates and reducing delays, such networks provide uninterrupted video streaming without interruptions. In addition, it becomes possible to increase the resolution of materials. The demand for new generation services, including augmented and virtual reality, is growing. At the same time, the number of smart TVs in use is increasing, which also provide convenient access to various sources of digital video content.

The authors of the study highlight three main areas in the market in question: streaming video, video on demand and live broadcasts. In 2023, the first of these segments accounted for $22.5 billion. Video on demand brought in $15 billion, and live broadcasts (in real time) - $9.88 billion. Among the devices that are used to view digital video content, smartphones lead - largely due to their convenience and multifunctionality. Tablets also take a substantial share, offering larger screens without compromising portability.

Geographically, North America was leading in 2023 with costs of $20 billion. This is followed by Europe with an estimate of $12 billion, and the Asia-Pacific region closes the top three, where expenses amounted to about $10 billion. The contribution of South America is estimated at 3 billion, the Middle East and Africa - at $2.38 billion. Statistics across these regions highlight different levels of digital content consumption, driven by differences in technological development and varying consumer preferences. The main players in the global market are:

• Tencent;
• ViacomCBS;
• Disney;
• Netflix;
• Roku;
• Apple;
• Amazon;
• Microsoft;
• Facebook;
• YouTube;
• AT and T;
• Hulu;
• Sony;
• Alibaba;
• Google.

At the end of 2024, revenue in the digital video content segment is estimated at $51.48 billion. Market Research Future analysts believe that in the future, the CAGR will be 8.65%. As a result, by 2032, costs on a global scale could increase to $100 billion. It is noted that the opportunities in the digital video content market are huge, especially for creators and distributors seeking to occupy niche segments.^[1]

Leader countries named by the number of subscriptions to video services

The growing number and quality of video services available leads to an increasing number of subscriptions per user. India is the leader in this indicator in 2023. This is evidenced by the data of Simon-Kucher, which became known in June 2024.

Consumers are increasingly choosing only one video service to watch, preferring to switch between different platforms, according to the study. This is due, among other things, to the availability of original content. In general, there is a tendency to reduce the number of subscribers using only one online cinema application. At the same time, the share of those who prefer from two to four video services is growing - about 48% of all users at the end of 2024.

The first place in the ranking of leading countries in terms of the number of subscriptions to video services in 2023 is occupied by India: consumers here are ready to pay an average of 3.3 subscriptions. In the second position there are USA 3.2 subscriptions per user. Closes the top three Spain with 3 subscriptions. Next come Brazil Australia with an indicator of 2.9 and 2.5 subscriptions, respectively. The top ten included (2.4 Netherlands subscriptions), Sweden (2.3 subscriptions), (2.1 Germany subscriptions), (2 Britain subscriptions) and (1.8 France subscriptions).

The defining criterion when deciding to buy a subscription to the streaming service is price: approximately 81% of consumers worldwide said this is the most important factor. The second most important parameter is a wide range of content - approximately 80% of respondents indicated it. This is followed by a 63% rate of adding new TV shows and movies to the streaming service. Other significant factors are the flexibility to unsubscribe at any time (58%) and the uniqueness of the content (56%).^[2]

Russia entered the top three countries in terms of pirated video content

Russia entered the top three countries in terms of pirated video content. This is evidenced by those published in January 2024. the results of a study conducted by MUSO (monitors piracy) and Kearney (specializes in consulting).

According to experts, in 2023, 141 billion visits to sites with pirated video content were recorded around the world (+ 10% compared to 2022), of which 11% of visits were made to the United States and India. The share of the third Russia was 6%.

LostFilm remains the largest pirated video service in the Russian Federation with a 45% share in 2023. The projects are followed by Zona (29.1%) and LordFilm (3.5%).

The fourth place in terms of traffic on sites with pirated films at the end of 2023 was taken by Britain (3%).

Almost two-thirds (65%) of visits were to sites with films and TV shows. A quarter came from anime sites. The top three with a 9% share were taken by resources with recordings of broadcasts of sports events.

Judging by the study, there are some regional differences in which type of content is most popular. In part, it depends on how easy it is to access legal content in a particular country. For example, in the Asia-Pacific region, live broadcasts of sports matches are 5.3%, and in the United States this figure can reach 11.3%.

MUSO founder and CEO Andy Chatterley says piracy is a bigger problem than ever by 2023, so understanding why people resort to illegal content is key.

Our data could contribute to the real transformation of entertainment companies, helping to truly understand how their content can be better positioned, better sold and better adapted for a wide audience that is currently not satisfied with legal offers, Chatterley said.[3]

Map of the popularity of streaming services by country

2022

Global online cinemas start ramping up content production again after slump

The world's largest online cinemas in 2022 sharply increased the production of original video content, the release of which was significantly reduced a year earlier due to the COVID-19 pandemic. This is stated in a study by the analytical firm Omdia, the results of which were released on March 14, 2023.

The report looks at popular platforms such as Netflix, Amazon, Apple TV +, Disney +, HBO Max, Hulu, Paramount + and Peacock. At the end of 2022, they jointly presented 1752 premiere video products, and the total duration of these materials reached 4878 hours. This is respectively 60% and 87% more compared to the results for 2021.

Netflix became the most productive platform: in 2022 it presented 935 titles, and the total duration of original content was 3531 hours. Of these, more than 50% came out of the US market. Omdia estimates that since the release of the comedy-drama television series Lilyhammer in 2012, its first original product, Netflix has created more than 14,000 hours of its own video footage. A study by Omdia says that 935 online Netflix originals released in 2022 cost approximately $5.8 billion. About $1.1 billion of this amount fell on Europe, another about $1 billion - on Asia and Oceania.

Analysts say that the increase in original production of video content is mainly due to two factors: new projects delayed due to the COVID-19 pandemic, as well as the ongoing international development of D2C services (Direct to Consumer - "direct to the consumer"), such as Disney +, HBO Max and Paramount +. The total number of original names from these sites was 614 in 2022, an increase of 44% compared to the previous^[4]

US streaming services overtake classic cable TV in viewing time for the first time

In July 2022, streaming services in the United States overtook classic cable television for the first time - 34.8% versus 34.4% for cable.

2021: Introduction of fines for users of pirated online cinemas in Italy

In early September 2021 Italy , they began to fine users and subscribers of pirated online cinemas that used the services. IPTV More. here

2020: Global streaming content spending up 16.4%, to $220 billion

The cost of producing and licensing entertainment content on streaming services in the world at the end of 2020 reached $220.2 billion, which is 16.4% more than a year earlier. Such data in June 2021 led to the research company Purely Streamonomics.

The largest costs for streaming content in 2020 fell on Walt Disney - $28.6 billion. The second place in this indicator was taken by Warner Bros. Discovery ($20.8 billion), the third - Netflix ($15.1 billion). It is assumed that after the completion of the acquisition of the MGM film studio by Amazon, the new conglomerate will take fourth place with content costs of about $11.8 billion.

The total spending of the four companies leading in production and licensing of entertainment content on streaming platforms in 2020 increased by 16.1% compared to the previous year and amounted to $76.3 billion.

In addition to the United States, this market is growing in other regions. Thus, in the countries of Africa and the Middle East there was a 46.3 percent increase in spending (up to $2.8 billion), in Latin America - 32.9 percent (up to $5.2 billion). This rise is largely due to the development of regional streaming projects.

According to Purely Streamonomics, the cost of streaming content in Europe at the end of 2020 amounted to about $32.6 billion. However, here the market showed an increase of 11.8%, which, according to analysts, is expected in the future.

As for streaming services leading in terms of audience size, the first three places were taken by Netflix, Prime Video and Tencent Video, which have 208 million, 200 million and 123 million users, respectively. Next is the Disney + service (103.6 million), and the top 5 was closed by iQiyi (101.7 million subscribers^[5]

2020

Growth in the number of users of online cinemas by 26%, to 1.1 billion

The number of subscriptions to video streaming services in 2020 increased by 26%, to 1.1 billion. The total volume of the streaming services market in 2020 reached $68.8 billion, an increase of 23%, in 2019 the figure was $47.2 billion. This is evidenced by data from a report by the Motion Picture Association.

The United States took the largest market share. As of the end of 2020, there were 308.6 million subscribers to streaming services, which is 32% more than in 2019. Revenue from online entertainment grew by 21% to $30 billion.

In addition to increasing the number of subscribers during the pandemic, streaming services also attracted more users. More than half of U.S. adults (55%) reported an increase in viewing time for movies or TV shows through online movie theaters, while 46% reported an increase in viewing time for pay-TV shows.

Netflix took the lead, ending 2020 with 200 million subscribers. Disney + has attracted a record 100 million users for the service. Against the background of the growth in the number of subscribers and the number of streaming services, Hollywood studios began to produce more series. In 2020, the number of series created by American companies and shown on online platforms rose to 537, up from 381 in 2019.

The surge in online entertainment only partially offset the drop in box office receipts caused by the closure of cinemas during the COVID-19 coronavirus pandemic. Box office of cinemas in the world decreased by more than $30 billion in 2020, reaching $12 billion. In 2019, the world box office reached a record $42.3 billion. In the United States and Canada in 2020, this figure collapsed to $2.2 billion, compared with $11.4 billion in 2019.

The leader in box office in 2020 was China, which surpassed the United States in this indicator. Revenue from ticket sales in China in 2020 reached $3 billion.^[6]

Growth in consumption of OTT services amid COVID-19

Against the backdrop of the COVID-19 epidemic in April 2020, Americans for the first time began to watch more than an hour of video services a day on the Internet.

2019: Allied Market Research Forecast

The global OTT market will reach $332.52 billion by 2025. This means that the cumulative annual growth rate (CAGR) will be 16.7% during the forecast period, according to a study by Allied Market Research.

Market growth is driven by increased demand for OTT and SVOD services in developing countries, increased content diversity, increasing popularity of streaming channels, and the development of OTT technology. At the same time, market growth is constrained by the lack of data network infrastructure and problems with delay, Digitaltveurope writes in June 2019.

OTT solutions account for the largest market share - more than 60%. Also in this segment, a rapid cumulative annual growth rate of 18.3% is forecast during the forecast period.

The report also said that the smartphone segment is the dominant force in the market, and that this trend will continue. This segment is projected to show the fastest CAGR of 20.0%.

2018: US pays more for online video than TV

In 2018, for the first time, Americans paid more for internet video than for TV. Such data are given in a study conducted by the consulting company Deloitte.

According to experts, 69% of consumers in the United States pay to watch videos online, while the share of cable and satellite Internet users was 64%.

The percentage of those who use video services is growing from year to year. In 2009, there were only 10% of such subscribers among the US population, and by the beginning of 2018 there were 55%. The penetration rate of pay-TV in the country for many years exceeded 75%, but in 2019 it decreased to 64%.

Most often, videos on the Internet are watched by people aged 22 to 35:88% of them are subscribed to paid video services, and 51% of people pay for television in this segment. In the younger age category (14-21), 80% of users have paid subscriptions in online cinemas, and 57% of young people watch and pay for the service.

Deloitte calculated that by the beginning of 2019, 43% of the US population subscribed to paid television and Internet video. People who pay for online videos subscribe to three streaming services on average.

At the same time, experts note the problem of overflow of the online video market. New services from AT&T, CBS and Google began to compete with the leaders of Netflix, Hulu and Amazon Prime Video. In addition, video projects from Apple and Disney are expected to launch in 2019.

Deloitte believes that in an environment where more than 300 leading video projects are offered in the United States, and users have to monitor several subscriptions and payments, "the time for consumers may come for subscription fatigue." Media companies will have to closely monitor this problem, preventing it from intensifying due to advertising overload and data privacy violations.^[7]

2017

IBM Cloud Video: Online video services risk frustrating users

Companies that have sought to launch online video services due to growing demand in the market risk facing user frustration and, as a result, refusal to use their service. This is the conclusion reached by analysts at IBM Cloud Video, writes Rapid TV News at the end of 2017^[8].

The services, which are used by two-thirds of consumers in the United States, cause discontent among viewers. More than four-fifths of users observe a buffering or delayed launch during viewing - this is 6 percentage points more compared to 75% of respondents in 2016. Moreover, this trend is global.

In addition, despite the large selection of content, consumers are not satisfied with its amount. Nearly two-thirds (63%) of consumers said the main change they would make to their service was more content.

While a growing number of operators and technology providers have improved their personalisation offerings and recommendations for users, the survey found that such services do not actually meet consumer needs. Only a tenth of users watch most shows and movies recommended to them by the streaming service, and 44% of consumers rarely or never watch recommended content.

Another problem is advertising in TVOD services. Analysts said companies should make changes to their advertising strategies - nearly three-fifths of consumers said video ads negatively affected video viewing.

Digital TV Research: OTT content market revenues to double by 2022

Revenues from online TV shows and films in 138 countries will reach $83 billion by 2022, more than double the $37 billion in 2016, Digital TV Research reported. At the end of 2017, this amount will grow by $9 billion.

The dominant region by a wide margin will remain the United States. However, their market share will fall from 51% to 40% by 2022 compared to 2016. As for the Asia-Pacific region, China will add $7.6 billion to total revenue, and its own revenues will reach $12 billion by 2022.

"OTT sector revenues will exceed $1 billion in 14 countries by 2022 - twice as much as at the end of 2017. The top 5 countries will account for two-thirds of global revenue, "said Simon Murray, chief analyst at Digital TV Research.

These five countries, in particular, include, in order, the United States, China,, and Japan Great Britain. Germany No changes in the ranking are expected by 2022.

Video on Demand Subscription (SVOD) became the main revenue source for the OTT industry in 2013. By 2022, it will account for half of the revenue. SVOD revenues will amount to $24 billion between 2016 and 2022.

Limelight Networks: Users worldwide watch 34% more online videos than in 2016

Online video consumption continues to grow. Worldwide, users watch an average of 5 hours 45 minutes of video each week - a 34% more than 2016 year, according to Limelight Networks^[9]. For users of 18-25 years, this number exceeded 7 hours a week, with more than a quarter of them watching more than 10 hours of video.

Globally, the main device for watching online videos is a computer or laptop, then a smartphone and Smart TV. The smartphone has become the main device for viewing in India and South Korea, as well as around the world among users under 35 years old.

The most common type of content is series and movies, with men watching movies more often and women watching TV shows. Basically, users prefer a video 6-30 minutes long. However, for example, in France, short videos are more often watched for 2-5 minutes, and in the Philippines and South Korea - on the contrary, long - 31-60 minutes.

Most viewers of online videos subscribe to one or more subscription services (SVOD). Most of these subscriptions are for those users who have cable or satellite TV. In case of refusal of TV or online service, the main reason, as a rule, is a high price.

IHS Markit: Online video revenue in Europe grows faster than television

Analysts at IHS Markit, after examining TV consumption trends in major European markets France Germany-,,,, and Italy Spain - Great Britain found that linear TV viewing in these countries declined in 2016. Over the past two years, a large share of the audience has moved to video-on-demand platforms, Rapid TV News reported^[10] are^[11][12]

Developed digital markets such as the UK and France showed a stabilisation in overall viewing time in 2016. Despite the fact that a high growth rate was noted in the non-linear segment. Traditional television viewing in Italy was far ahead of other countries in time, with Spain in second place. In both countries, however, there is a decrease in linear viewing, since non-linear platforms greatly affect TV consumption. Germany was the only market among the analyzed, where the viewing time of linear TV, and therefore the total consumption, increased in 2016.

However, all this did not affect the income of operators. In all five European markets, total TV revenues, including subscriptions, advertising and public funding, fell only slightly in 2016 - to €58bn from 58.3bn the previous year. In particular, budget revenues decreased by 5%, and revenues from paid TV increased by 2%, mainly due to video on demand (an increase of 10%). By comparison, online video generated €5bn in revenue in 2016, posting a 32% increase since 2015.

"Traditional

TV operators need to take into account the fact that competition for consumer time and expenses of media companies are increasing. Further competition for consumer time is due to the fact that users can choose from a wide range of media services. The growing availability of set-top boxes makes it possible for pay-TV operators to transfer some Internet services to the big screen. We expect the media and entertainment market to become increasingly murky as players, including social networks, seek to expand their portfolios, "said Fateha Begum, deputy director of TV at IHS Markit

.

2016

The Diffusion Group: Viewers will spend more than a third of their time on online video by 2025

By 2025, the duration of watching online videos will increase by 81%, and traditional TV will be reduced by a third (34%). This is stated in a study by The Diffusion Group (TDG) - The Future of TV Viewing^[13].

Analysts of the company calculated that if now watching online video occupies 17% of the total video consumption, then by 2025 this figure will increase to 38%. At the same time, the duration of watching traditional television will fall from 81% in 2015 to 53% in 2025.

"Professionally created video videos, which are not inferior in quality to television ones, are now available on almost all resources, services, in all environments and devices," comments Joel Espelien, a leading analyst at TDG and author of The Future of TV Viewing. He also stressed that despite the fact that operators and television networks are aware of these trends, few of them understand how they can be used and how to transform their video offer in the future.

Recall that according to a survey by the Mail.Ru Poster project and the MASMI research agency, last year the share of users who prefer not to download films and TV shows, but watch them online, increased by 10% compared to 2012. At the same time, the number of downloading films decreased to 35%, while in 2012 this number was more than 50%. The proportion of people who prefer to watch television series on the Internet has grown from 24% to 31%. And the number of respondents watching TV shows daily decreased from 41% to 35%.

2013

Data from J'son & Partners Consulting

J'son & Partners Consulting (Jason & Partners Consulting) ¹ estimates that the online video segment accounted for 15% of the global digital content market in 2013. In the next three years, the online video segment will rapidly develop and in 2016 will reach 18% of the digital content market. In Russia, the online video segment is at the development stage and occupies 7% of the Russian digital content market, in 2016 this segment will reach a share of 11%.

When calculating the global market, J'son & Partners Consulting evaluated data on digital music content segments, online videos, games, digitized books from such international sources as NewZoo, IFPI, Siemer.com, statista.com, ESA, BPI, PwC, Digital TV Research, ERA, which conduct analytics in this industry

According to Digital TV Research, the online TV and video segment accounted for 8% of the global video market in 2013. It is worth noting that the share of this segment is growing, while the share of paid TV in the world is decreasing. According to Digital TV Research, the share of pay-TV decreased from 98% in 2010 to 92% in 2013.

The global online video market amounted to $15.9 billion in 2013, according to Digital TV Research. By 2016, the share of online video in the digital content market will grow, and the online video market will be estimated at $25.5 billion.

By 2018, 510 million households in 40 countries will watch television and video online (both on a paid basis and with advertising support), which is more than 3 times higher than in 2010 (182 million households, according to Digital TV Research estimates). The OTT television sector is on a serious rise, as key market participants are increasing their market shares, spreading geographically, Internet penetration in the world is growing, new technologies are emerging - all this contributes to the development of OTT services.

The most significant segment in paid OTT services is the advertising segment, which took 46% of the online video market in 2013. The subscription model made up the second significant part of the market with a share of 38% of the market. Even though services like Netflix and Hulu Plus are quite popular in the North American market, they remain little known internationally to date. However, as these services develop worldwide, the share of the subscription model in the overall structure will grow.

Online Video Market Characteristics by Country

The numerical indicators of the online video market USA signal that it is in the saturation stage, but the monetization of the market segment through streaming services is gaining momentum. For example, the YouTube service is developing its offer of advertising services, while traditional media games draw revenue from the segment of advertising TV content, as noted by a ComScore source. Online video access services - YouTube,, Netflix Hulu.com, IVI, multi-channel networks, social videos, OTT video platforms - are the main participants in the US online video market.

One of the main trends in the UK online video market is the growing popularity of streaming services Netflix, Lovefilm, NowTV, TVCatchupi Blinkbox. The most popular streaming service in terms of unique users is Netflix. The number of users of this service has grown more than 3 times in two years. The popularity of the NOWTV service, which appeared on the market only in July 2012, is growing - 2.4 times over the same period under review.

2012

Palo Alto Networks: Video streaming and file sharing eat up corporate resources

According to Palo Alto Networks experts, from November 2011 to May 2012, the volume of streaming video transmitted over corporate networks increased by more than 300%. Video now accounts for 13% of total network traffic. The volume of file-sharing traffic is growing even faster: over the same period, they increased by 700% and now account for 14% of total traffic.

Such data in Palo Alto Networks were obtained on the basis of traffic analysis in corporate networks of 2036 companies around the world. On average, 34 different video streaming applications and 13 browser interfaces to file-sharing sites (including Megaupload) were detected on the corporate network. Social media is also prominent. 97% of networks found work with at least one social site, and on average, each network had 29 different social media apps.

Despite the fact that some of these applications pose a security risk, Palo Alto Networks experts consider the results of the study not a reason for panic, but an incentive to create rules for their use, which would give employees the desired flexibility, but did not interfere with the company's main business.

2010

By the end of 2010, the volume of Internet video for the first time in history will exceed the volume of user exchange (peer-to-peer), as a result of which Internet video will come out on top in the total volume of world traffic. At the same time, it is expected that the growth of global Internet traffic, as before, will occur primarily due to video (TV, video on demand, Internet video, user exchange), the share of which in the total volume of global user IP traffic by 2014 will exceed 91 percent. By that time, the popularity of face-to-face communication using the Internet will increase sevenfold, and the global community of online video users will exceed 1 billion people. In addition, according to Cisco Systems forecasts, by 2014 the volume of video traffic in 3D and HD formats will amount to 42 percent of the total volume of user video traffic on the Internet.

Шаблон:Online Video