Video Streaming Market Insights, Potential Business Strategies, Mergers and Acquisitions, Revenue Analysis

The categories of the video streaming market based on offering are service and solution. Between the two, in 2018, the higher revenue share of 94.6% was contributed by the solution category. Along with being extremely popular in the entertainment sector, video streaming solutions have become an important component for sales, marketing, business development, and corporate communications. 

This has resulted in their wide applications for personal as well as professional use. The solution category is further subcategorized into IPTV, OTT, and pay TV; among which the fastest-growing subcategory is the OTT. The video streaming market is witnessing the trend of the shift toward the OTT platform. It has been observed that in countries, such as the U.S., more than 150 million people have opted for OTT services, whereas more than 180 million people, use smart TVs.

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Further, people are opting for personalized content, which is pushing companies to offer high-margin visual entertainment by offering users bundled services. The rising popularity of OTT can be correlated to the rising consumer preference for specific content and better connection reliability offered by the service providers.

Market Dynamics

Trends

• Shift toward OTT platform
• Increasing deployment of interactive video content

Drivers

• Increasing popularity of social media platforms
• Increasing connectivity is propelling the growth of video streaming market
• Rising growth of video streaming market in developing countries
• Impact analysis of drivers on market forecast

Restraints

• Restrictions by government for broadcasting international television shows
• Piracy concern
• Impact analysis of restraints on market forecast

Opportunities

• High growth in education sector
• Use of AI in data analytics

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One of the major drivers of the video streaming market are the surging popularity of social media platforms, which can be credited to the improved access to the internet and connectivity. For instance, an explosive growth of 99% was exhibited by the video content on media platforms, such as YouTube in 2017. 

Further, these platforms are now increasingly being used as an advertising revenue model for generating income. Based on this model, YouTube has generated maximum revenue, which is closely followed by Facebook Inc. An increase of $40 million to the revenue was registered by Coursera in 2018. Currently, the largest market for online courses is North America.

Therefore, the market for video streaming is headed toward a bright future in the forecast period due to the increased access to the internet and the ability to access the content as per the consumer preference.