8 Video Streaming Trends & Predictions for 2024
Published On February 13th, 2024 How To
Videos have always remained the epitome of content consumption.
The impact of video content is so much that it will contribute to over 82% of the Internet traffic by 2024.
This is indeed a feat of magnanimous scale and it is OTT platform that bags the credit for such large projections.
The evolution, demand, and progress of the over-the-top landscape is ubiquitously talked about. But, what streaming businesses are keen to infer is what the future holds for them.
With 985 million households giving up their conventional pay TV subscriptions in 2023, the days ahead look promising for over-the-top services that play it wise. In other words, it is the ever rising demand for newer alternatives to traditional television bundles that will make the VOD market grow in magnitude.
To understand the growth in precise detail, here’s an aggregated list of happenings that 2024 will encounter when it comes to OTT.
Table of Contents
Video streaming Trends & Predictions for 2024
Adhering to the market forecast that indicated a 1,039 billion revenue influx by 2027, looks like the potential to unwavering profits is definite and some of the factors mentioned below might influence the same.
1. OTT user penetration to upsurge
Needless to say, people are increasingly inclined towards adopting over-the-top services for entertainment, live sports, educational video streaming, fitness streaming, and much more.
It is evident that most of today’s everyday happenings more or less revolve around content consumption and communication via digital channels which in turn signals why OTT popularity will be at its peak in the days to come.
Recent findings infer that
- The OTT realm is growing steadily at a CAGR of 29.4% from 2020 to 2027
- SVOD will remain the largest revenue segment and will surpass the 1000 million mark by 2024
- Video streaming platform user penetration will climb 35% by 2025
2. 5G will revolutionize video streaming
It is evident that conventional broadcasters are already venturing into the digital realm because of the increased Internet penetration across the length and breadth of the globe. With the rollout of 5G, the network speed is faster, and stutter-free, paving the way for platform owners to deliver an impeccable watch experience.
Especially in live streaming where quality is the key to a close to real-life experience, the next-gen Internet connectivity will assure low latency streaming in verticals like sports and entertainment.
Considering the rapid pace at which localities are getting urbanized, 5G will act as a catalyst in helping businesses acquire a large subscriber base who are vigilant about low-latency video playback.
3. Connected TV to magnify in popularity
As much as smartphones and tablets have taken the streaming industry by storm, audiences are equally fond of streaming on Internet connected devices.
Smart TVs, Xbox, Playstation, and streaming devices like Roku, Amazon Firestick, Apple TV, etc are classic examples of CTV usage. In fact, the smart TV viewer count is projected to grow to a whopping 119 million by 2024 in the US alone.
This signals that video consumption via Internet-propelled streaming devices will surge in the coming years despite the rising habitude towards mobile apps.
4. User experience to lie at the epicenter of content consumption
The competition is intensifying every passing minute. Repositories of content are created in abundance and it is user experience that will make a streaming service stand out from its industry rivals.
With the rise in OTT players, viewers are no longer tied down to one service provider. The options are plenty and hence, only a hyper-personalized platform that keeps viewer experience at the forefront of its streaming setup makes a striking difference.
Some of the key factors that the viewership of 2024 relies on will be
- Intuitive/ user-friendly interface
- Seamless navigation
- Personalized recommendations
- Niche content offerings
- Easy content discovery options
- Uncomplicated transaction/ payment process
- Attractive viewer retention plans
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5. Streaming competition to intensify
OTT in general is a constructive ecosystem. Not only is it highly welcoming, the streaming industry is also extremely rewarding, no matter how new businesses are.
In essence, the next couple of years will witness a climbing number in the volume of debutants, independent artists, and content owners, raising the bar high in terms of quality content.
Audiences look for a plethora of content genres and hence, it is no surprise that the competition will intensify as market veterans continue striving to secure their spots while new entrants go that extra mile to make heads turn.
6. Audio streaming & podcasting will grow alongside video
Well, it is not just video that is going to be of unprecedented demand next year; the audio streaming software market is equally surging in terms of notable engagement and revenue.
Make an audiobooks app, songs, faith-based content; online audio streaming content is going places across verticals. In fact, 2024 is likely to witness a 17.8% growth in audio streaming in addition to the 24.7% hike the industry experienced in 2023.
The music industry in specific has already gained a roaring success this past decade with the inception of audio streaming apps with both on-demand and live audio marching towards a greater momentum than ever before.
7. Streaming providers to mitigate subscription churn & fatigue
Churn rate is rather an intimidating term for a platform owner. Not only does a high churn rate signify a diminishing income stream, it also signals an underlying hitch that is making subscribers lose interest in your platform, leading to increased cancellations.
While churn rate is something to be handled tactically right from day #1, a major factor that contributes to such a situation is subscription fatigue.
Recommended Read: Strategies to minimize OTT churn!
With a magnanimous increase in subscription-based video streaming services, a saturation state where audiences are no longer interested in paying for another streaming service is referred to as fatigue.
Online video platform providers have already begun finding creative ways to monetize with pay-per-view/ ads/ or other innovative business models rather than monthly/ yearly subscriptions and the efforts will continue to rise in 2024.
8. Premium content to lead the league
The world has always been in awe of free content. However, the undying need for high-quality videos, seasonal franchises, and other forms of premium content that comes with a tag is gaining immense popularity.
Also, people are willing to pay for unique content that is found nowhere else and hence, the demand for premium content will rapidly ascend in 2023.
Stats wise, the revenue generated from the premium content market is set to hit an all-time high of $20 billion globally by the end of 2023 from $6 billion back in 2017.
Summing up,
2024 will pave the way for innovative, out-of-the box inclusions and offerings in the streaming landscape.
Revenue wise, the growth would be exponential which in turn would incentivize new entrants and content producers to come up with their standalone OTT platforms to reap the monetary benefits of the rising demand.
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