The video streaming service market is valued at US$103.567 billion in 2020.
Video streaming service is the delivery and consumption of multimedia through online services, which allow users to watch videos without the need to download them. Livestreaming is the transmission of content in real-time during creation, similar to how live television transmits programming across several channels. The video streaming service market is driven by the increase in consumers and is expected to increase in size as newer technological advancements are released. The adoption of 5G technology is another significant factor in the increasing demand for streaming services.
The convenience of watching movies, series, videos, and live programs without leaving the house influences the video streaming service market. With the adoption of on-demand entertainment, streaming services allow us to watch what we want. This is one of the main reasons for the rise of streaming services such as Netflix, Amazon Prime Video, etc.
The global television market has also been reportedly declining. According to Ofcom, despite the fact that more individuals watched broadcast television during the pandemic, the TV's proportion of overall viewership declined from 67% to 61% in 2020. Young people aged 16 to 34 are also quitting live television. They spend more time on streaming services (91 minutes) and YouTube (72 minutes) each day than they do viewing live television (65 minutes).
The introduction of 5G networks will revolutionize the way bandwidth-intensive, high-quality, and high-demand video is delivered to mobile devices. 5G is expected to provide speeds of up to 1 Gbps, which is around ten times faster than older 4G networks, which only provide speeds between 100 Mbps and 200 Mbps. Since 5G can support a much denser network of base stations, greater bandwidth is accessible in high-traffic areas such as sports arenas and music venues. 5G technology is also expected to decrease latency in video streaming, even at higher qualities like 8K streaming, which would provide a much better user experience for consumers. 5G network is also expected to provide better battery efficiency for handheld devices.
According to OOKLA, a global internet speed testing company, the download speeds of 5G are 954% faster than traditional 4G networks, and the upload speeds are 311% faster. UAE and Saudi Arabia were reportedly the fastest countries in the 5G spectrum. OOKLA also reported that the Netherlands saw a growth of 50,350% in 5G developments in Q3 of 2020 compared to the previous year. This was followed by an increase of 32,401% in Thailand and 21,566% in the United States. According to GSMA, 5G networks are expected to cover one-third of the world's population by 2025. With such rapid advancements in 5G technology, the video streaming service industry is expected to rise.
The video streaming service market has seen considerable advancements in the past few years. These technological advancements are achieved with the motive of delivering a better viewer experience for the users and, in turn, increasing their profits.
Video streaming services have been proliferating quickly over the last few years. However, the market has faced many challenges in the last few years. The increasing inflation rates are another significant reason for the losses faced by the video streaming industry.
Netflix has been raising its prices significantly in the last couple of years. This has led customers to opt for better and more economical alternatives such as Amazon Prime Video, which provide the same services, along with a lot of other features at a much lower cost. Netflix has lost tons of subscribers and revenue due to this reason. Netflix reported a loss of about US$50 Billion and a drop of about 35% in their stock price. These losses are expected to further drop the revenue for the company. Other companies like CNN+ have also failed to make an impression on the market and were shut down after only one of their services. Failures like these have left the market in a state of worry, and investors are re-evaluating their decisions to invest in the video streaming market.
Conflicts in between countries have also contributed to market unreliability
Following the war between Russia and Ukraine, many big companies have stopped operations in Russia. Many streaming services, such as Netflix, Amazon Prime Video, Disney+, YouTube, etc., have halted operating in the country, leaving a lot of companies in a tight spot. Netflix recently announced that it lost almost 700,000 accounts in the country. Other media streaming agencies have also reported a significant loss of subscribers from the region. Apple’s revenue from Russia in the year 2020 amounted to about US$2.5 Billion. Hence Apple might face significant losses owing to the war. With the stoppage of product sales and services from companies like Apple and Samsung, the Russian video streaming market is expected to fall significantly; however, the overall market might not be much affected.
Impact of COVID-19 pandemic on the Video Streaming Service Market
The growing infection rates during the COVID-19 pandemic led to the implementation of stringent lockdown and social distancing regulations. Owing to the confinement of most people and the introduction of work-from-home policies, the market reported a surge in demand for video streaming services. Moreover, the introduction of better technological advancements and interactive user interfaces also drove the market demand. Furthermore, with the developments in 5G technology, the market is anticipated to increase substantially in the forecasted period.
|Market size value in 2020||US$103.567 billion|
|Growth Rate||CAGR during the forecast period|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Streaming Type, Platform, End-User, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Akamai Technologies, Google LLC, Netflix Inc., Hulu LLC, Star, Amazon Web Services, HBO Max, Comcast, Imagine Future Investment (HK) Limited, Viki|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global video streaming services market?
A1. The global video streaming service market is estimated to be valued at US$103.567 billion in 2020.
Q2. Who are the major players in the video streaming services market?
A2. Prominent key market players in the global video streaming services market include Akamai Technologies, Google LLC, Netflix Inc., Hulu LLC, Disney+, Amazon Web Services, and HBO Max among others.
Q3. How is the global video streaming services market segmented?
A3. The video streaming services market has been segmented by streaming type, platform, end-user, and geography.
Q4. What factors are anticipated to drive the video streaming services market growth?
A4. The convenience of watching movies, series, videos, and live programs without having to leave the house influences the video streaming service market.
Q5. Which region holds the largest market share in the video streaming services market?
A5. The North American region is anticipated to hold a noteworthy share in the video streaming services market.
1.1. Market Definition
1.2. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Product Pipeline
4.5. Industry Value Chain Analysis
5. Video Streaming Service Market Analysis, By Streaming Type
6. Video Streaming Service Market Analysis, By Platform
6.2. Smartphones and Tablets
6.4. Smart TVs
7. Video Streaming Service Market Analysis, By End-User
8. Video Streaming Service Market Analysis, By Geography
8.2. North America
8.3. South America
8.4.3. United Kingdom
8.5. Middle East and Africa
8.5.1. Saudi Arabia
8.6. Asia Pacific
8.6.4. South Korea
9. Competitive Environment and Analysis
9.1. Major Players and Strategy Analysis
9.2. Emerging Players and Market Lucrativeness
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Vendor Competitiveness Matrix
10. Company Profiles
10.1. Akamai Technologies
10.2. Google LLC
10.3. Netflix Inc.
10.4. Hulu LLC
10.6. Amazon Web Services
10.7. HBO Max
10.9. Imagine Future Investment (HK) Limited
Amazon Web Services
Imagine Future Investment (HK) Limited
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