OTT video services are now a major player in the entertainment industry, offering many opportunities for businesses worldwide.
Consumers watch over 11 billion minutes of content on their tablets and smartphones each year, not to mention the countless hours spent watching TV channels on traditional television sets – there’s no denying that this is one market that has truly taken off!
In Europe, the numbers are very high. According to a report by Juniper Research, which surveyed 2,000 people in thirteen European countries including Germany, France, Italy, and Spain, more than a quarter of internet users (26%) regularly watch videos online.
Another third do so sometimes (up from 20%). Moreover, almost half of Europeans aged 18-34 regularly watch videos on YouTube or other platforms using their smartphones or tablets. This number is much higher compared to other age groups.
What is OTT streaming?
Many people prefer streaming services like Netflix, Amazon, and Hulu instead of traditional TV packages. However, there are still many people who either can’t afford or don’t want a full cable subscription for their media needs.
OTT streaming lets users watch content from popular streaming services like Netflix, Hulu, or Amazon Prime directly in a web browser without any extra obligations.
Each of these platforms offers various benefits and perks for smart consumers who want to stream videos online. Now, let’s take a closer look at the advantages of each service.
OTT streaming services in Europe
In the United States, Netflix, Amazon Prime, and Hulu dominate the video streaming market. These three companies are responsible for over 50% of all U.S. internet traffic used for streaming media in 2017!
That said, Europe hasn’t seen many successful OTT players yet, but there are companies here that cater to this need. Moreover, many new companies are also offering their own streaming services directly to consumers, which will lead to even more competition in the future!
OTT streaming market size in Europe
According to Statista. The estimated revenue for the OTT Video market in Europe is expected to reach US$48.16 billion by 2023.
This particular market segment is projected to grow at an annual rate of 6.35% (CAGR 2023-2028), resulting in a market volume of US$65.53 billion by 2028.
Among the various segments within the OTT Video market, OTT Video Advertising holds the largest market share, with a volume of US$23.95 billion in 2023.
When compared globally, the United States is expected to generate the highest revenue, reaching US$126,500.00 million in 2023.
By 2028, the number of users in the OTT Video market is projected to reach 690.8 million. User penetration, which represents the percentage of the population using OTT Video market services, is expected to be 69.7% in 2023 and is projected to increase to 81.5% by 2028.
The average revenue per user (ARPU) in the OTT Video market is estimated to be US$81.39 in 2023.
In France, local players such as Canal+ and Orange dominate the OTT video market by offering a wide range of original content to attract subscribers. to attract subscribers.
OTT streaming in the Nordics
YouTube has been prevalent in the Scandinavian region for years, but consumers this millennium have experienced Netflix and Amazon Prime Instant Video much more frequently. These platforms have become top choices amongst Nordic subscribers – which is why it’s likely that they’ll be among your favorite services as well!
Are you an avid YouTube user? If so, you may be interested to know that there is some fantastic news regarding the site’s availability in Scandinavia.
A recent update on its website states: “We’re pleased to announce that you can now access YouTube content across Nordics with a Nordic IP address”.
This means users who reside in Finland, Iceland, Norway, Denmark, or Sweden should no longer need any special circumstances such as local proxy servers in order to access their preferred video content.
OTT streaming in Germany
Germany is an avid consumer of video content, with a literacy rate that ranks among the highest in Europe. With such lofty expectations from its citizens toward consuming videos, there is no doubt that Germany would be a prime market for streaming services like Netflix.
But German consumers have been lured into cable TV subscriptions by content bundles, so the arrival of streaming video services poses quite a conundrum.
To get around this issue, many cord-cutters opt to opt for a combined subscription with their new OTT-based option, this way they can access both platforms conveniently without incurring additional costs!
As per research conducted by BroadbandTV, 56% of respondents were willing to pay up to $25-$35 monthly for a service with at least five channels.
With these figures, we can conclude that there exists pent-up demand for an affordable streaming alternative within Germany – which could be an ideal opportunity for both Amazon and Netflix to seize before the competition gains any foothold.
OTT live TV/OTT on-demand/some combination of both
We do not need to divulge much information about live television streaming options in this article, as they are becoming increasingly popular among consumers.
But with the advent of on-demand content, there is no reason that dedicated live TV streaming services couldn’t coexist alongside them – after all, they have become a staple component of many viewers’ media consumption habits!
While live television streaming has attained unparalleled popularity with subscribers in recent years, we may be witnessing its demise soon.
After all, Netflix’s decision to cease offering its own linear subscriptions indicates that such models could soon be relegated to history, remarkably uncompetitive when compared to the multitude of OTT video platforms currently available!
Indeed, it appears that users do not necessarily desire the convenience of consuming their favorite shows from within their living room; rather than choosing between cable/satellite providers and OTT services like Netflix or Amazon Prime Instant Video.
OTT on mobile/OTT on desktop/OTT everywhere
To round out this piece, let’s take a look at the opportunity of OTT video streaming on mobile devices.
If you haven’t yet figured it out, nearly everyone is now using their phone to access content in some capacity, therefore, this avenue for monetization is quite attractive.
With all these platforms out there to choose from, it can be difficult to decide which one works best for your brand. This certainly calls for a comprehensive decision-making process!
OTT video consumption patterns
Are you curious about how people consume video content? Not only do they binge-watch shows, but they also watch them before bedtime.
On average, consumers tune in to their favorite TV series on an evening. This may not seem like a noteworthy habit if compared with the marathon viewings of Netflix and YouTube that are commonplace today.
However, in comparison to streaming services like Amazon Video, which is markedly less popular amongst users – only 1/3rd as many of them choose to employ it when consuming media.
The prevalence of television still remains dominant in Europe, however, more than half of all OTT subscribers have availed themselves of at least one subscription-based service such as Netflix or Prime Video.
Furthermore, 47% claim to have utilized more than one platform concurrently – demonstrating a trend towards multi-channel consumption within households!
Clearly, those who have opted for multiple subscriptions enjoy access to more choices in regard to content and services – something we will further explore later on in this article.
OTT video ad options
Suppose you cherish the convenience and accessibility of online video streaming services. In that case, it’s critical to remember that marketers are not absent from the equation – especially when it comes to those without access to these platforms.
With OTT Video Ads in place, you can deliver your message directly to people who cannot view your video content through their preferred platform or apps.
This gives them a chance to have an intimate encounter with your brand or an opportunity to click on a link for more information about it – without ever requiring a login!
There are several options for including video ads within your content offers. You could utilize both pre-roll as well as mid-roll, depending upon the format; or even just have one at all!
OTT video offerings are becoming more refined
Just a few years ago, an avid user of Netflix would find it difficult to navigate the vast library available on this platform. However, with its recent launch of personalized recommendation systems and a more sophisticated algorithm dedicated solely towards assessing user preferences when matching content up against one another – such inconveniences are becoming a thing of the past!
Netflix is not alone in offering these services, but many other video-streaming platforms have taken steps to identify patterns of their users’ preferences and tailor their offerings accordingly.
If you’re curious about what your own viewing habits are like, then take a peek at Netflix’s ‘My List’ feature where you can compare your preferences with those of other viewers.
Conclusion
With the advent of OTT video streaming, viewers can now enjoy content on demand whenever it is most convenient for them.
That said, this new form of entertainment does not come without potential pitfalls – especially when it comes to content piracy and user acquisition.
With all eyes on Europe’s biggest markets, content providers are more incentivized than ever to produce high-quality content that will resonate with audiences. Thus, the future looks promising for OTT video streaming!
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