Video Streaming Service Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Streaming Type (Non-linear, Live), By Platform (Smartphones And Tablets, PCs/Laptops, Smart TVs, Others), By End-User (Consumer, Enterprise), And By Geography - Forecasts From 2022 To 2027

The video streaming service market is valued at US$103.567 billion in 2020.

Introduction

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.

Market Trend:

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).    

Growth Factors

• Development of 5G technology

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.

• Advancements in the video streaming technology

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.

• Amazon announced the launch of its free streaming service known as Amazon Freevee in April 2022. This streaming service is said to work similarly to other streaming services such as Amazon Prime Video, Netflix, etc., but with the addition of ads. Amazon also announced that it is going to release exclusive content for this website as well. Microsoft has also been reportedly developing a device that allows streaming TV services and games directly to the TV, much like the Amazon Firestick.
• Streaming services such as Disney and Netflix have announced enormous investments in their streaming content. Disney announced it would raise its content spending to US$33 Billion in 2022. Netflix also continues to spend money on its content, despite recent setbacks from the market. Netflix has also announced its intentions to dive into the gaming sector.
• The debut of LiveAPI, a new product from Castr Live Streaming Inc., a Canadian live-streaming solution provider, was announced in March 2022. The package provides a collection of potent APIs for creating on-demand and live video streaming applications. The whole technical processing of video, including live streaming, encoding, hosting, and distribution for any application, is handled by LiveAPI.
• The first worldwide large-scale streaming service made just for the Spanish-speaking world, ViX, was announced in April 2022, by the Spanish media and entertainment firm, TelevisaUnivision. ViX will provide access to a large portfolio of top content and formats from Televisa's vault, as well as more than 50,000 hours of Spanish-language media across all genres, including original series and films, live sports, live news, and current Televisa and Univision blockbusters.
• With support from AWS SaaS Factory, Broadpeak introduced a new video streaming API SaaS platform in January 2022. Broadpeak offers AWS-qualified software solutions and is a top source of CDN and video streaming services, assisting content producers and pay-TV operators throughout the world in meeting these demands.

Restraint

• Unstable market

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 the 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.