An over-the-top (OTT) media service is a platform that delivers content directly to viewers over the Internet. The term is most commonly associated with subscription-based video-on-demand (SVoD) services, which provide access to movies and television shows. These services can be accessed through websites on personal computers, as well as through apps on mobile devices like smartphones and tablets, digital media players such as gaming consoles, or Smart TVs with built-in streaming capabilities.
How does OTT differ from traditional TV?
The primary factor that sets OTT platforms apart from traditional TV is how content is delivered. OTT platforms provide direct access to users via the internet, whereas traditional TV requires a cable or satellite dish connection to receive broadcasts. Moreover, OTT services allow users to pay only for the content they want to watch, rather than subscribing to an entire package that may include channels they are not interested in. In contrast, traditional TV offers little to no flexibility. In today’s fast-paced digital world, convenience is key—people no longer want to wait for scheduled broadcasts. OTT platforms cater to this demand for instant gratification by enabling viewers to access content anytime, anywhere, at their convenience.
Market Statistics:
The global OTT market size will reach USD 1,039.03 billion by 2027, growing at a CAGR of 29.4% from 2020 to 2027. In the OTT Video segment, the number of users is expected to amount to 3,382.6m users by 2026.
Major players in the OTT streaming market are Facebook, Netflix, Amazon, Microsoft, Google, Apple, Hulu, Tencent, Rakuten, and YouTube. This is nearly double the amount of revenue in 2020, which was $106 billion. As of 2025, Netflix has experienced significant growth in both its subscriber base and viewing hours. The platform now boasts over 260 million paid subscribers worldwide.
OTT Market Revenue Distribution:
51.58% of OTT revenue is generated from Advertising Video-on-Demand (AVOD).
40.16% comes from Subscription Video-on-Demand (SVOD) services.
5.1% is derived from Pay-Per-View, also known as Transactional Video-on-Demand (TVOD).
3.16% of the market revenue is attributed to Video Downloads (EST).
Despite the various revenue streams, advertising remains the dominant contributor, accounting for 51% of the total revenue in the OTT market.
Several factors contribute to the sustained growth of OTT platforms, including:
- Affordable subscription plans
- Flexible payment and subscription models
- Seamless viewing experience across devices
- A vast library of fresh and original content
- Enhanced connectivity and user-friendly interfaces
Given these advantages, it is evident that OTT platforms are here to stay and will continue to thrive in the coming years.
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Aparna Dutta /
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Hello, I am a content writer with 3.5 years of experience. I have experience in various fields of content writing. For example, I have worked in a market research organization where I had to write content related to the reports that the company used to generate to improve their Google ranking. Other than that, I have also worked in website content as well as technical content for print and digital media magazines. Apart from this I am very flexible as a person and can adjust easily.
