Video Streaming Market Size, Share & Industry Analysis, By Component (Hardware, Software, Content Delivery Services), By Streaming Type (Live Video Streaming, On-demand Video Streaming), By Streaming Model (Advertisement-based, Subscription-based, Transactional-based/Rental), By Deployment (On-Premise, Cloud), By End-Use (Commercial, Residential), and Regional Forecast, 2020-2027

The global video streaming market size stood at USD 342.44 billion in 2019 and is projected to reach USD 842.93 billion by 2027, exhibiting a CAGR of 12.0% during the forecast period.

Improved connectivity and advancement in technology has made live video accessible to almost everyone having internet connection. In today’s digital space, video streaming has become an influential media for accessing information. Moreover, the increasing preference for streaming services like Netflix, Hulu, Amazon Prime, and the growing popularity of live videos among various businesses is fueling the video streaming market growth. According to a study conducted by Cisco Systems, Inc. in 2018, over 47% of the increase was observed in live streaming as compared to 2017.

In this current pandemic scenario, millions of people are working from home, a dramatic increase in the consumption of streaming video is witnessed over the past two months. This has forced live and on-demand streaming companies to take some measures like repeat telecasts of the old shows and reduction of streaming quality. The streaming service providers are temporarily migrating from H.D. to S.D. streaming and are dispensing high bandwidth pop-ups and ads to ease the network load. Meanwhile, in March 2020, Apple T.V. + introduced its first free show, Oprah Talks, where the talk show host Oprah Winfrey will be conducting interviews of people via FaceTime.

LATEST TRENDS

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Leveraging Artificial Intelligence (A.I.) and Machine Learning (ML) to Transform and Optimize Streaming Workflows

Artificial intelligence (A.I.), and machine learning (ML) are triggering the media and entertainment industry. These technologies assist in finding more efficient ways to organize, encode, and distribute data, thereby streamlining the digital media space. From regulating illegal content to preventing copyright breach, the A.I. is playing a crucial role in the streaming industry. The adoption of A.I. in video streaming has been growing among content developers, producers, and streaming platforms to regulate the issues associated with live streaming. Presently, A.I. and ML are utilized for recommendations and ad serving, viewer metrics, technical, and network troubleshooting. A.I. is paving its way for intelligent analytics and content management as it can automatically extract metadata from categories, descriptive tags, and summaries. This has led to enhanced regulations while protecting the privacy of streamers and effectively monitoring the potentially harmful content. Besides this, as A.I. and ML can handle responsibilities such as live transcription, meta-tagging, and translation, it has reduced human efforts and cost incurred in the process of distribution and creation of live video content. For instance, in April 2020, National Basketball Association (NBA) signed a multiyear partnership deal with Microsoft Corporation, to create a direct-to-consumer platform powered by A.I. and Microsoft Azure, which will provide enhanced streaming capabilities.

DRIVING FACTORS

Proliferation of Live Video Streaming in Various Businesses to Bolster Growth

Live streaming has proved to be an essential tool for businesses as it supports in enhancing their brand and customer engagement activities. Through live streaming, companies can promote their products and services, interact with customers, and can efficiently resolve customer issues. A study conducted by Brandlive and IBM in 2018, stated that around 95% of companies believe that live video is expected to become an essential part of their marketing mix in the coming future. The study also reveals that over 50% of companies are willing to increase their budget for live content as compared to the previous year. Educational institutions, government, enterprises, and healthcare providers, among others, are all taking advantage of live streaming in one or the other form. For instance, healthcare organizations make use of live video for professional conferences, staff training, and telemedicine, among others. It has also found application in court hearings, mandated sessions, and town hall meetings.

During the current COVID-19 pandemic, businesses in the streaming and e-commerce industry are experiencing significant growth in their customer base. The lockdown situation in many countries has urged people to work from home, which ultimately led to the massive use for communications, employee training, meetings, and webinars. Moreover, considering the education sector, according to a report published by Kaltura’s State of Video in Education, in 2019, 53% of education institutions make use of live streaming for school events, conferences, and lectures. However, this per cent is expected to soar higher in the coming days owing to an uncertain lockdown period. Many schools and colleges have already started conducting online lectures, thereby bolstering the growth of the market. Thus, the businesses that have realized the importance of reaching their target audience through live videos are expected to drive their revenue streams in this tough situation.

Surge in Popularity of Over-the-Top (OTT) Streaming Platforms to Fuel Market Growth

Over the past few years, OTT content has become a foremost medium of entertainment which has made OTT streaming a much more crowded ecosystem. Streaming providers such as Netflix, Hulu, Amazon Prime Video, HBO, and Disney+ are some of the popular streaming platforms. The unprecedented demand for these platforms is due to its unlimited real-time access to original and high-quality content. Besides, innovative product offerings have enhanced customer engagement and have been one of the reasons for expanded subscriber base. The video content of these platforms can be streamed on mobile devices as well as on smart TVs using devices like Amazon Fire TV, Roku Box, Android TV, and Apple TV. Many TV subscribers in the U.S. are shifting to OTT services like Netflix and Hulu owing to more flexible pricing and device support compared to traditional TV subscriptions. Thus, to sustain in the competition, several broadcast networks are focusing on launching their own OTT platforms and collaborating with online video platforms such as YouTube. For instance, in March 2020, Discovery launched an OTT service named Discovery Plus, offering features that are a combination of library content across the Discovery portfolio. Also, OTT providers are partnering with mobile operators to retain their position in this competitive environment.

Furthermore, in this lockdown scenarios, live content and streaming are rapidly increasing in terms of daily users. A drastic increase in subscribers and viewers is causing strain on internet bandwidth as OTT services like Netflix, Hotstar among others display video content in HD format. Thus, to ease the strain, these services have agreed to offer the video content in SD format. Similarly, to attract different segments of the population, OTT players are experimenting with various subscription and payment models to further expand their customer base.

RESTRAINNG FACTORS

Bandwidth Limitation and Latency Issues Prevent Viewers from Experiencing Seamless Video Streaming, thereby Hampering Market

Although streaming offers tangible benefits, bandwidth limitation and latency issues are some of the challenges associated with this streaming. Videos with higher resolutions and larger bandwidth capabilities usually create a bandwidth crunch on the network. For instance, Netflix requires an internet speed of 12 Mbps for 3D streaming, 7 Mbps, and 5 Mbps for Super H.D. and H.D. respectively. However, these speeds are available with most of the internet providers. However, with slower connection speed may face issues with poor quality of the video content. Apart from this, a massive amount of data generated with higher resolutions and bitrates may cause latency and reliability issues. Further, buying a subscription from unauthorized and untrusted platforms may lead to misuse and loss of financial and personal details. Thus, bandwidth constraint and latency issues are some of the factors refraining the growth of the market.

SEGMENTATION

By Component Analysis

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Content Delivery Services Segment Expected to Register Largest Market Share Owing to Growing Immense Subscription Base

On the basis of component, the market is broadly classified into hardware, software, and services. The hardware segment is further sub-categorized into a gaming console, media streamers, and encoders. Similarly, the software segment is sub-segmented into transcoding and processing, video delivery and distribution, video management, and others. Further, the content delivery services are divided into pay-TV, internet protocol TV (IPTV), over-the-top (OTT). Among these, the content delivery services segment holds more than 75% of the market share, whereas software is expected to be the fastest-growing segment during the forecast period.

Media streamers and gaming consoles are the main hardware components used to connect the television with the internet for streaming videos. These devices are capable of organizing and accessing user’s media libraries using the same interface. The popular media streamers available in the market are Amazon Fire TV, Apple TV, Google Chromecast, Roku, among others. The demand and supply of these devices were high before Coronavirus pandemic hit. However, as the production facilities have been halted and logistics have slowdown across the globe, these devices are expected to witness a decline in production.

Streaming software basically, performs tasks such as transcoding a video into a suitable format for streaming. This software also enables users to mix multiple sources to produce a professional-looking broadcast, even with limited technical knowledge. The most popular streaming software are OBS Studio, Wirecast, vMix, XSplit, VidBlasterX, among others.

Furthermore, content delivery services are impactful and useful in several ways. They are majorly used for streaming various contents, product and services promotions, wildlife broadcasting, online classes, among others. Among the different content delivery services, the OTT services are gaining enormous momentum owing to its flexible and low-cost model. It requires very less network infrastructure as compared to other services such as pay-TV and IPTV. However, pay-TV captures the largest market share as pay-TV services providers are diversifying and enhancing their services by integrating advanced analytics models. Moreover, pay-TV operators are focusing on embracing third-party SVOD like Maxdoem and Netflix, into their set-top box to enlarge their services and to stay competitive in the market.

By Streaming Type Analysis

Live Streaming Segment to Hold Dominance Owing to Enormous Use in Video Advertising and Sponsored Videos

The streaming type segment is categorized into live and on-demand streaming. Among these, live streaming holds the largest market share, whereas, on-demand streaming is expected to show the highest CAGR in the coming years.

Live streaming can be a one-on-one live video chat or broadcasting of live video to a wide audience over the internet. It offers brands and companies a direct and convenient way to connect and engage with their customers, building authenticity between them. Since the past years, the OTT market is experiencing tremendous growth in video advertising and sponsored videos. This has boosted the live streaming market. It is primarily used for offering live content like tutorials, events, and entertainment, among others.

Furthermore, on-demand streaming is gaining attention as it is easier to implement and offers better video quality as compared to live streaming. Unlike live streaming, on-demand video can be edited and made perfect before it is distributed. The video content can be availed months and years later, irrespective of its uploaded date.

By Streaming Model Analysis

Subscription-Based Model to Gain Traction Owing to its Ability to Scale Up the Business Quickly and Steadily

Based on streaming model, the market is categorized into advertisement-based, subscription-based, and transactional-based models. Among these, the advertisement-based model holds the largest share. However, the subscription-based model is anticipated to be the fastest-growing segment mainly due to growing number of subscribers for video on demand services like Netflix and Amazon Prime.

In Advertisement-based models, viewers can access video content free of cost. On the other side, the platform owners generate revenue from in-video advertising in the form of post-roll, mid-roll, pre-roll and text ads. Advertisement-based models are mainly used when the videos are relatively generic and smaller. Choosing the right ad network is of utmost importance in this case as videos are provided free to customers, and income is generated through advertisements. YouTube is one example of an advertisement-based model.

Similarly, the subscription-based model is likely to gain traction in the market during the forecast period as the model is assisting companies to scale up their businesses quickly and steadily. Users can access an entire library of videos at an acceptable amount that can be charged annually, monthly, or weekly depending on the service. Netflix and Amazon Prime use subscription-based models. According to Intertrust.com, online streaming service subscriptions were 600 million in 2019 globally. It stated that the number of subscribers is expected to reach 1.1 billion by 2021. 

Transactional-based models allow users to buy content on a pay-per-view basis rather than buying the entire catalogue. Google Play and iTunes are examples of the transactional-based model.

By Deployment Analysis

Cloud-based Segment is Projected to Show Highest CAGR Owing to its Flexible Deployment

Based on deployment, the market is bifurcated into on-premise and cloud. The on-premise deployment holds the maximum share, whereas, the cloud is projected to be the fastest-growing segment during the forecast period.

The cloud-based solution requires less streaming equipment and is considered to be the most flexible deployment option. Streaming platforms have started adopting cloud to enable greater speed and larger bandwidth, thereby providing a better viewing experience. However, on-premises deployment is still considered ideal for a wide variety of enterprise needs. It provides the user with complete control over the servers. Latency is easily controlled across private WAN connections and data centers. Also, in on-premise deployment, the content from video repositories can be distributed and managed appropriately, as an in-house operator has to control the network.

By End-Use Analysis

Commercial Segment to Emerge as Fastest-growing Segment Owing to Increasing Use of Live Videos

By end-user, the market is segmented into residential and commercial. The residential segment holds the maximum share, while, the commercial is estimated to be the fastest-growing segment.

The use of video streaming is high in residential owing to the benefits including—instant viewing, no download time, no need for memory space, instant playback, and availability of many streaming options. Moreover, video platforms have been enabling individuals to showcase their talent and widen their fanbase. According to the study conducted by Leichtman Research Group, in 2019, nearly three-quarters of households in the United States have subscribed to these streaming services.

Many businesses have already started incorporating video streaming into various activities such as brand marketing and customer support. Commercial enterprises are using streaming platforms for creating webinars, social media videos, product demos, vlogs, leadership videos, among others. In the coming years, the probability of using this service for troubleshooting issues is high.

REGIONAL INSIGHTS

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Geographically, the market is widespread into five major regions, namely North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.

North America holds the highest share in the market owing to the presence of a large number of streaming providers in the U.S. This nation alone has more than 200 streaming services providers. Also, due to advanced network infrastructure, internet connectivity is high in this region. Amidst the COVID-19 pandemic, most of the people in the U.S. and Canada are spending their time at home. These have bumped up the video gaming and OTT streaming. Likewise, Europe is the second-largest region in this market. A high standard of living and a matured home entertainment market are a few of the factors responsible for the growth of the market. As compared to the U.S., Europe has better stronger net-neutrality protections.

Asia Pacific is expected to be the fastest-growing region during the forecast period. The increasing number of tech-savvy populations and the growth of smartphone users are some of the factors boosting the growth of this regional market. For instance, as per Financial Times, in China, the average weekly downloads of apps jumped to 40% in just the first two weeks of February 2020, as compared to the average downloads in 2019.

Furthermore, the Middle East and Africa and Latin America markets are expected to show significant growth in the near future owing to growing investment by countries like Brazil, South Africa, and UAE in technologies.

KEY INDUSTRY PLAYERS

Brightcove, Inc. to Follow Partnerships and Acquisitions Strategy to Accelerate the Product Offerings

Brightcove, Inc. offers a comprehensive product portfolio as it provides various services such as Video Cloud, an online video platform, Zencoder, cloud-based video-encoding service, OTT Flow, Brightcove Beacon, Enterprise Video Suite, Video Marketing Suite, Brightcove Campaign, an app for creating video-driven marketing campaigns, and others. As a part of business strategies, the company intends to focus on partnership and acquisition activities of companies to enhance the ability to compete in core markets and enter new markets. Also, the company’s operations are focused on improving the existing product portfolio. For instance,

April 2019 — Brightcove Inc. acquired Ooyala, provider of cloud video technology, headquartered in California, United States. The acquisition strengthens the market position of Brightcove in the online video industry.

October 2019 — Brightcove, Inc. expanded its partnership with Marketo Engage, intending to incorporate video content into their marketing strategies.

The Major Players Such as Apple, Inc., Roku, Kaltura, Inc., Focuses on Product Development, to Stay Competitive in Market

The key players in the market are continuously focusing on innovating their products to maintain their position in the market. The streaming industry has started witnessing changes in strategic collaborations, content monetization, and content delivery on various mobile platforms. The drastic shift of consumers towards OTT services and advanced featured products is compelling companies to recognize the worth of live streaming in their businesses.

For instance, in February 2020, Netflix, Inc. partnered with Samsung Group based in Seoul, South Korea and became Samsung’s mobile entertainment partner. With this partnership, Netflix, Inc. will be producing exclusive content for the users of Galaxy smartphones.

List of Key Companies Profiled:

• Akamai Technologies (Massachusetts, United States)


• Amazon.com, Inc. (Washington, United States)


• Apple, Inc. (California, United States)


• AT&T, Inc. (Texas, United States)


• Brightcove, Inc. (Massachusetts, United States)    


• Cisco Systems, Inc. (California, United States)


• Google LLC (California, United States)


• IBM Corporation (New York, United States)


• iQIYI (Beijing, China)


• Kaltura, Inc.  (New York, United States)


• Netflix, Inc. (California, United States)


• Roku, Inc. (California, United States)


• Tencent (Shenzhen, China)


• Walt Disney Company (California, United States)


• Wowza Media Systems, LLC (Colorado, United States)

KEY INDUSTRY DEVELOPMENTS:

• May 2020 – Amazon Web Services, Inc. launched Elemental Link, a small hardware device. This device will make it easy to connect live video sources with Elemental Media Live service to broadcast live video processing in the cloud.


• June 2019 – Tencent, a China-based company, launched a new service in Thailand to expand its services outside China. Tencent Video service is named as WeTV and Chinese content with Thai dubbing.

REPORT COVERAGE

The report offers qualitative and quantitative insights and a detailed analysis of market size & growth rate for all possible segments in the market.

An Infographic Representation of Video Streaming Market

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Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape. Key insights offered in the report are adoption by individual segments, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and current video streaming industry trends.

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