10 OTT Trends to Watch for in Over-The-Top Streaming in 2024

The OTT industry is booming. It’s no secret that the significant OTT market growth is slowly but surely shaping the future of OTT streaming. Every area of home entertainment spending has declined over the past five years except online video. The video-on-demand trends show that the revenue in 2024 was US$182.40bn, but it’s expected to reach a projected market volume of US$231.50bn by 2027.

As the OTT industry expands, 24.6 million U.S. households have cut their TV cord. So, it is no surprise to expect that this number will rise to 46.6 million U.S. households by the end of 2024.

Join us to learn some of the latest OTT trends you should definitely watch for. Take a look at some of the Streaming Service Trends 2024.

Table of Contents

• What is OTT and Why is it Relevant?
• Top 10 OTT Industry Trends in 2024
• Conclusion

What is OTT and Why is it Relevant?

OTT stands for “over-the-top,” which primarily refers to media distribution over the internet. IP networks distribute more and more media today. In fact, some industry leaders advocate that we stop differentiating between OTT and broadcast TV entirely. We currently face a future in which all TV is distributed via OTT live streaming. 

It’s safe to say that the technology informing OTT trends enters a period of maturity and becomes more settled. The technologies underlying VOD and live streaming are becoming significantly robust and solid. Although there are not many major changes on the horizon, the industry is still evolving in terms of offerings from major players and the behavior of consumers.

Top 10 OTT Industry Trends in 2024

This article examines 10 major OTT industry trends. We’ll look at the rise of 5G and what that means for video, major players entering the streaming solutions market, and more. 

Armed with some information on over-the-top content market trends and industry highlights going forward, you’ll be better prepared for the future.

1. OTT Continues to Grow

The OTT industry has seen a lot of growth and evolution in just a few short years. However, we are still so close to the start.

Experts forecast that there will be significant OTT market growth in the coming years. The OTT industry is expected to be worth $1.039 trillion by 2027. This is a significant increase from $121.61 billion, which was the industry’s value in 2019.

The growth will surely continue once OTT live streaming services enter the market and more viewers continue to “cut the cord” on cable.

2. Immersive Streaming Technology Becomes Accessible

The 4K streaming trends state that a video takes at least 25 Mbps of internet bandwidth. You should have at least double that bandwidth for live video streaming. That’s not very common for consumer-grade internet connections. However, the rise of 5G will enable an explosion in streaming video quality by making 4K streaming solutions possible.

The extra video bandwidth will make it possible to stream 4K video. Expect 4K and VR (Virtual Reality) streaming to be defining features of the next 1-2 years. 360 live streaming will also become much more possible with these new network connections. Overall, the personalized streaming experience will, very soon, become much more immersive.

One game-changer in the immersive streaming world was the release of Facebook’s “Oculus.” Previously, virtual reality consoles were upwards of $2000. The Oculus models, however, start at $299. This makes it much more attainable for consumers to get their hands one of their own.

With VR technology currently being the most popular among consumers, it is no surprise why it slowly trickles into various other industries. This type of trend is likely to grow as cross-device streaming technology becomes more accessible to consumers.

3. Media Giants Rule the Premium Market

The premium OTT market is undergoing some tectonic shifts. After many years without major competition, Netflix has finally started to take a hit. 

Some serious competition has appeared in the form of niche OTT platforms. Media giants like Disney, HBO, and NBC have released Disney+, HBO Go, and Peacock Premium, respectively. Moreover, the Disney+ app was downloaded 3.2 million times in the first 24 hours it was available.

The OTT platform growth trend also includes streaming services from Apple TV+, AT&T, and Comcast. Other OTT trends include a big increase in sports streaming services. These niche OTT platforms are flooding the market with premium content, making it harder for new sports broadcasting services to compete with these established giants.

The exact way this new competition will play out depends on local market content recommendation algorithms. For example, OTT video analytics show that Netflix remains to be the only American streaming service across Southeast Asia. Cutting their OTT content licensing and opting for U.S. content, Disney+ and Prime Video are cutting their original teams, while Paramount+ and Max have limited or no presence whatsoever.

As these services and OTT trends rise, they’re entering the mainstream in never-seen-before ways. OTT advertising has earned its rightful place in the online ads space. Based on OTT advertising strategies, advertising revenues are expected to experience a steep increase of 7.17% by 2029 as more consumers choose OTT content personalization and on-demand streaming services.

4. Subscription Fatigue Encourages Innovation in OTT Monetization

By some estimates, more than a third of professional broadcasters monetize their content via subscription models. However, this is having at least one adverse effect on the market for OTT pricing.

According to a global survey from Apester, 60.1% of people are sick of so many streaming services. More than a fifth don’t know much of anything about upcoming services, only 16.5% say it makes sense to have so many competing services. “We have fast come to the point of excessive options in the OTT space both globally and locally,” said Varun Duggirala, Content Chief & Co-founder of The Glitch.

This current reality is a kind of “subscription fatigue,” and it’s increasingly a problem. Watching subscription-based OTT video services is a daily habit for 60% of adults in the US. At the same time, many viewers have become tired of subscribing to multiple services.

However, this is driving increased innovation in terms of trends for OTT video monetization. Providers are increasingly turning towards pay-per-view and advertising monetization as alternatives to subscription monetization. 

We may see increased usage of bundling different subscription packages together to create channels. We’re already seeing Disney+ bundle their videos together with ESPN, National Geographic, and other content producers. This will likely continue to become more popular in the future.

5. CTV Continues to Become More Popular

Connected TV, or “CTV” for short, refers to streaming on televisions via OTT technology. This has become more popular over the past year as viewers have begun watching more content on TVs as opposed to mobile devices. This is made possible through smart TVs, gaming consoles, and dedicated streaming devices.

Interestingly enough, the increase in CTV streaming has not caused a significant decrease in streaming on smartphones, tablets, and computers. For a few years, there was a general preference towards mobile streaming, so it will be interesting to see how this trend looks going forward.  

Some popular technology for CTV streaming includes Amazon’s Firestick, Roku, Apple TV, Xbox, PlayStation, and the Nintendo Switch.

6. User Experience (UX) Becomes Key

The great roll out of OTT streaming services by media giants led to subscription fatigue. There are so many platforms that are willing to take viewers’ money, so viewers have the power to pick and choose the services they’d like to use.

OTT user experience (UX) has contributed greatly to the success of platforms. Viewers prefer using streaming services with interfaces and easy navigation. They also want the best selection of content.

For example, if you compare Netflix and Hulu, you will see that the Netflix platform is easy to navigate, pleasing to the eye, and the selection of content is quite expansive. Both platforms have released some phenomenal movies and series, but Netflix does so on a larger scale.

Generally, Netflix is more in tune with creating personalized streaming experiences. Their content recommendation algorithms are user-friendly, while their app is easy to navigate on most devices. On the other hand, Hulu’s platform is a little clunky and the platform’s search engine isn’t the sharpest.

However, Hulu has one advantage over Netflix. They release episodes within hours after they air on live TV. Another interesting thing to point out is that Hulu releases originally series in the same fashion that traditional television does by airing only one episode a week. Netflix releases entire seasons at a time, which makes the shows “binge-able.” 

In general, users prefer Netflix, which is why Netflix is worth a whopping 10x more than Hulu. Of course, these are just two of many streaming platforms, but this quick comparison should give you a good idea of what users value.

7. Competition in the OTT Hosting Industry Gets Tough

Despite the fact that authority in the OTT streaming industry is held by a few major players, smaller OTT streaming services are still popping up. These platforms require the support of online video platforms to operate at a professional level.

At this point, there are so many qualified OTT hosting solutions to choose from, including Dacast, Vimeo, Brightcove, and more. Cloud-based OTT solutions are also emerging as an affordable option.

People turn to these platforms for support with content management and distribution. Some desirable features include advanced security, video monetization, reliable content delivery, white-label streaming, and live streaming capabilities.

For more information on some of the top OTT hosting platforms, we urge you to check out our dedicated comparison post.

8. OTT Content Fragmenting

Another major OTT trend in 2024 is content fragmentation. Content fragmentation is a strategy that broadcasters and other content creators use to target niche audiences in hopes of maximizing their success. The idea is that if the content is carefully curated and strategically set up for delivery, it will have a better chance of landing with the intended viewers.

One prime example of this is Gaia, which is a niche OTT platform designed for streaming “Conscious Media.” This platform is geared towards viewers that value spirituality, enlightenment, meditation, and yoga.

Creators who are catering towards a “mindful” audience would likely work to have their content distributed via Gaia as opposed to other popular streaming services, like Netflix or Hulu. On the other hand, broadcasters or creators who produce raunchy comedies or sitcoms would likely avoid services like Gaia since that audience wouldn’t fall into their niche.

9. Online Audio Streaming Becomes More Popular

We are on the brink of a major shift in the way that people consume audio content, including talk shows and music. Up until recent years, most audio streaming was done via terrestrial or satellite radio. While these audio media distribution methods are still going strong, OTT audio streaming is on the rise.

Listening to audio content, such as live streaming music and podcasts, over the internet on smartphones and other digital devices is another one of the Streaming Service Trends 2024.

In 2013, only 12% of Americans over the age of 12 had listened to a podcast, while this number increased to 31% in 2023. The online music streaming industry, which includes services like Spotify, Apple Music, and Pandora, is also growing at a rapid rate. It is predicted that the global music streaming industry will grow by a compound annual growth rate of 14.4% from 2023 to 2030.

10. OTT Streaming Localization

Streaming localization is another major trend that is designed to make online video content more accessible to viewers in different locations. This helps brands and creators expand their reach and connect with a larger audience.

Some methods of streaming localization include translated captions, multi-currency payment options, enhanced content delivery, China delivery, and more. Basically, the goal is to make the viewing process seamless and comfortable for viewers, no matter where they are located.

Many creators take streaming localization to the next level and create localized content for segments of their audience. For example, if a British company is trying to connect with an American audience, they might curate some of their content to make it more culturally relevant to Americans versus locals. This could be done by using American actors, creating scripts that use an American dialect, and so forth.

Content localization can tie into content fragmentation, which we discussed before.

Conclusion: OTT Trends in 2024 and Beyond

When it comes to current OTT trends, the industry is finally getting close to its mature stage. We’re seeing the rise of some exciting new OTT technology advancements, along with the consolidation and smoothing out of others.

Additionally, the streaming technology industry is also facing some new challenges. It’ll be interesting to see how 2024 plays out after unprecedented shifts over the past year.

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