Media Streaming Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Media Streaming Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Media Streaming Market size is expected to grow from USD 119.01 billion in 2023 to USD 173.73 billion by 2028, at a CAGR of 7.86% during the forecast period (2023-2028).

The growth of the market is fuelled by the growing demand for subscription-based services, increasing availability of region-specific and original content, and the popularity of live sports. These drivers are changing the strategies adopted by the vendors in the market as the emphasis on enhanced customer experience by providing personalization and low-cost services is increasing daily.

Key Highlights

• Media quality is improved by using innovations like blockchain technology and artificial intelligence (AI). Editing, cinematography, voice-overs, scriptwriting, and many other facets of video creation and upload are all greatly aided by AI. It is projected that these advancements will have a favorable impact on the market's expansion. The content quality of media is being improved by a number of suppliers of media streaming solutions employing AI. Recently, these channels have become much more popular than mainstream media outlets like YouTube and Netflix.
• Moreover, the advertising and revenue model plays a crucial role in this market. More people pay attention to ads on streaming platforms than on social media. For instance, In a report titled "India Embraces the Streaming Era," published today by Magnite, the largest independent omnichannel sell-side advertising platform in the world, it was discovered that ads on streaming platforms attract more attention than those on social media. Almost two-thirds of streamers in India (64%) are more receptive to advertising on streaming platforms, with many claiming to frequently do a product search (48%) and make a purchase (33%) after the fact.
• Netflix offers its most basic plan starting at USD 8.99 per month and USD 12.99 for its high-definition service. Amazon Prime customers can get an annual membership for USD 119 or pay USD 12.99 a month. The market is, therefore, getting more competitive with such price wars and more big players entering the market, such as Apple and Disney.
• Furthermore, the rapid adoption of smartphones and cloud-based services, increased penetration of OTT platforms as compared to traditional pay-tv, and incorporation of AI and machine learning to help regulate live streaming and provide insights on consumer usage patterns and partnerships to offer more and region-specific content has increased the growth of video streaming segment across regions. For instance, Netflix has 75,000 different content genres and provides personalized content for individual users through recommendation, which is possible due to the algorithms allowing it to do so.
• The ongoing spread of coronavirus has positively impacted the media streaming industry due to enforced home confinement measures. The vendors were witnessing a spike in the number of subscribers and a peak in viewership across regions due to increased demand for online streaming and changed consumers. For instance, In the first quarter of 2020, ending on March 31, Netflix added 15.8 million subscribers globally, which is more than double the 7.2 million that was expected and a growth of 22.5% year on year. Further, Netflix reported a rise in the quantity of new mobile application installations of more than 50% in Italy and more than 30% in Spain in March 2020.

Media Streaming Market Trends

Music Streaming Segment is Expected to Witness Significant Growth

• Music streaming providers are offering exclusive content with podcasts and original content, which first attracts people towards the platform and eventually turns them as subscribers. Moreover, promotional activities like price cuts in subscriptions in growing markets and bundled offers from telecommunications players are expected to boost the growth further. For instance, Spotify witnessed a YOY growth of 31% of the total revenue and a 35% share of the total paid subscriptions, mainly due to increased promotional activities such as free Spotify premium for three months, price cuts in subscription models, etc.
• One of the most well-liked trends in the global market is the expanding use of 5G connections. Amazon has taken advantage of this chance by launching a new music HD service that will give music lovers in the United States, the United Kingdom, Germany, and Japan access to lossless music streams and downloads. As 5G becomes more commonly used, businesses will be able to provide high-fidelity music streams because of its ability to transport data multiple times quicker than 4G. Virtual Reality (VR), Augmented Reality (AR), and hologram concerts are anticipated to become quite popular for live-streaming music videos. These new developments are accelerating the market's expansion.
• Players in the market are offering new features such as curated playlists, night mode, and lossless music for improved targeting, which is also providing companies with a competitive edge over others, thus making the market competition stronger. This is also done to improve customer retention as the number of options in the market increase continually. For instance, between December 25, 2021, and January 31, 2022, about 82,000 New Year's Eve playlists were made; on New Year's Eve itself, almost 40,000 playlists were made.
• Although global players are strongly penetrating their music streaming platforms by adopting various strategies, regional players still have a stronghold in their respective regions, owing to regional exposure and a high focus on local content. For instance, Gaana continues to be the number 1 player in the Indian market, whereas Yandex Music is leading in Russia. Similarly, Tencent Music Group is one of the leading players in China market because of its apps QQ Music, Kugou, and Kuwo.

Asia Pacific to Witness Significant Growth

• Rising investment in content creation has led to the creation of new content offerings. Increasingly, India is becoming one of the content hubs, with a wealth of material being created for consumption locally and around the world.​ For instance, In June 2020, Tencent announced the Malaysian video streaming platform Iflix's content technology and resources to grow its presence in Southeast Asia.
• Although North America still dominates the media streaming market, Asia Pacific is showing a rapid increase in the growth rate. Giants such as Disney and Apple Inc. are set to launch their platforms across the Asia Pacific in 2020, leveraging growing mobile usage and rapidly improving access to faster-speed Internet.
• According to IFPI Music Report 2022, Engaging with Music 2022 is a global report on how people all around the world enjoy and engage with music. It was published today by IFPI, which represents the recording business globally. The survey, which is based on responses from more than 44,000 people in 22 countries, is the biggest music study ever conducted. More than 45% of customers choose paid membership services, and 46% of respondents use audio streaming subscription services, which provide continuous and on-demand access to millions of licensed songs.
• Moreover, 97% of the population listens to music using a smartphone; 62% use social media sites or apps to listen to music or watch music videos. This shows the ongoing transformation towards digital media in the region is further expected to grow the market for media streaming.

Media Streaming Industry Overview

The media streaming market is highly fragmented owing to the presence of significant players in the market and growing competitiveness in the market. Vendors in the market are concentrating on providing high-value bundles, innovative features, and High quality, original and region-specific content to gain a competitive advantage and improve their market position by acquiring more customers. Vendors are also adopting partnerships and acquisitions to strengthen their place in the market.

In November 2022, A new multi-year distribution arrangement was announced between Paramount and Virgin Media, extending their long-standing collaboration across all of Paramount's linear channels and streaming platforms in the UK. In 2023, Virgin TV would launch Paramount+, a global subscription video-on-demand (SVOD) service, owing to the partnership's renewal.

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