Market Insights Advertising & Media Media TV & Video

OTT Video - Europe

Europe

Revenue in the OTT Video market market in Europe is forecasted to reach €48.41bn in 2024.
The revenue is anticipated to display an annual growth rate (CAGR 2024-2029) of 5.59%, leading to a projected market volume of €63.53bn by 2029.
The largest market is OTT Video Advertising with a market volume of €23.63bn in 2024.
In a global context, the in the United States is expected to generate the most revenue (€123,300.00m in 2024).
In Europe's OTT Video market market, the number of users is projected to reach 636.9m users by 2029.
User penetration will be 67.4% in 2024 and is forecasted to reach 75.6% by 2029.
The average revenue per user (ARPU) in the OTT Video market market is estimated to be €85.07 in 2024.
In Europe, the OTT Video market in France is witnessing a surge in local content production to cater to growing viewer preferences.

Key regions: United Kingdom, Germany, Asia, South Korea, Japan

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Analyst Opinion

The OTT Video market in Europe is experiencing significant growth and development.

Customer preferences: Customers in Europe are increasingly turning to OTT Video services for their entertainment needs. The convenience and flexibility of being able to stream content on demand appeals to a wide range of consumers. Additionally, the availability of a vast library of movies, TV shows, and original content allows customers to find and watch their favorite content at their own convenience.

Trends in the market: One of the key trends in the European OTT Video market is the rise of local and regional players. While global giants like Netflix and Amazon Prime Video continue to dominate the market, local players are gaining traction by offering content that is tailored to the preferences of the local audience. These local players often have a better understanding of the local culture and can provide content that resonates with the viewers. Another trend in the market is the increasing adoption of smart TVs and streaming devices. With the advancements in technology, more and more households in Europe are equipped with smart TVs or devices like Roku or Apple TV, which allow easy access to OTT Video services. This has fueled the growth of the market as it removes the need for additional hardware and provides a seamless streaming experience.

Local special circumstances: One of the unique aspects of the European market is the diversity of languages and cultures across different countries. This presents both opportunities and challenges for OTT Video providers. On one hand, it allows for the creation of content that caters to specific local markets, increasing the appeal and relevance of the service. On the other hand, it requires providers to invest in localization efforts, including subtitles and dubbing, to ensure that the content is accessible to a wider audience.

Underlying macroeconomic factors: The growing OTT Video market in Europe can be attributed to several underlying macroeconomic factors. Firstly, the increasing penetration of high-speed internet and the widespread availability of broadband connections have made it easier for consumers to access and stream video content. Secondly, the rising disposable income and changing consumer behavior have led to an increased willingness to pay for premium content. Lastly, the proliferation of smartphones and mobile devices has created a new avenue for OTT Video providers to reach consumers on-the-go. Overall, the OTT Video market in Europe is evolving to meet the changing needs and preferences of consumers. With the rise of local players, advancements in technology, and the diverse nature of the market, the industry is poised for further growth in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on Traditional TV & Home Video and OTT (over-the-top) Services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective segment. This spending factors in discounts, margins, and taxes.

Modeling approach / Segment size:

The segment size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, number of internet users, and internet consumption.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant segment. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.