TV has always been a great way for brands to get noticed and boost sales. But over-the-top (OTT) apps, which let you stream content online without a cable box, are even better. They combine the wide reach of traditional TV with the convenience and flexibility of the internet, making them a powerful tool for content creators, distributors, and brands.
Brands are catching on fast to the benefits of OTT apps with the most notable being the ability to reach people who are tough to contact through regular TV. OTT apps are becoming so popular that soon, there will be almost as many homes using them as there are with traditional pay TV.
With 75% of Americans using multiple OTT platforms, marketers should seize the opportunity. Many people prefer ad-supported plans, meaning they’re open to watching ads. This is your chance to connect with viewers while they enjoy their content.
Know all other insights from the OTT sector in this post. Let’s get into it without further due.
OTT industry market size in the United States
The OTT market in the United States is currently valued at $316.4 billion and is projected to reach $364.3 billion by 2026. The average growth rate for the market is projected to be 6.30% until 2029, when the market will be worth $429.4 billion.
The United States is the world’s largest OTT market, with around 377 independent OTT providers. The widespread adoption of smart devices, the increasing demand for video-on-demand content, and a high per-user payment rate are significant contributors to the market’s growth.
Here is a table showing the OTT market size in the United States from 2024 to 2029:
| Year | OTT market size |
|---|---|
| 2024 | 316.4 billion |
| 2025 | 341.4 billion |
| 2026 | 364.3 billion |
| 2027 | 386 billion |
| 2028 | 407.7 billion |
| 2029 | 429.4 billion |
Source: Statista.
OTT market size in the United States by segment
As of 2024, The OTT video advertising market has the biggest share in the total OTT industry with a market volume of $191.30 billion. The video streaming (SVoD) sector has the second-largest share with a market volume of $108.5 billion.
Pay-per-view and video downloads segments collectively account for 5.35% of the total OTT market size.
Source: Statista.
Number of OTT users globally
There are 3.92 billion OTT users globally in 2024. That is equivalent to 48.4% of the world’s population. The OTT user base is estimated to rise by 25.46% and reach 4.92 billion by 2029.
Here is a table showing global OTT users from 2024 to 2029:
| Year | Global OTT users |
|---|---|
| 2024 | 3.92 billion |
| 2025 | 4.13 billion |
| 2026 | 4.33 billion |
| 2027 | 4.53 billion |
| 2028 | 4.72 billion |
| 2029 | 4.92 billion |
Source: Statista.
There are 235.84 million OTT users in the United States
There are 235.84 million OTT users in the United States alone, equivalent to 71% of the country’s population. It is estimated that the OTT user penetration in the country will increase to 72.4% by the end of 2026.
Being the world’s biggest OTT market and home to 377 independent OTT providers, the US market is home to 6% of the world’s OTT users, with 3/4th of them having more than 2 active subscriptions.
Source: Statista.
75% of American OTT users are subscribed to more than two platforms
The number of OTT subscriptions has surpassed the US population, as 3 out of 4 Americans are subscribed to two or more OTT platforms. Currently, there are 411 million OTT subscriptions in the country.
People have embraced OTT platforms ever since the COVID-19 pandemic started; fewer people in the United States are paying for traditional TV, dropping from over 80% in 2015 to less than 60% now.
The US OTT market is highly competitive, and it’s only rising with newer streaming services like Peacock and HBO Max coming in.
57% of American internet users say streaming is their main way of watching TV
Ampere’s report revealed that streaming is the main way of watching TV and movies for 57% of US internet users. Streaming took a solid 40.3% share in total TV usage in the United States as of the first half of 2024, whereas cable accounted for 27.2% of the share.
The figures might slightly go in favour of cable and broadcasting in the third quarter of 2024 due to the Summer Olympics in July and August. It could be a game-changer for traditional TV. These events, held every four years, have always attracted big audiences on both regular and cable TV.
We will update this space as soon as we get our hands on the Q3 2024 TV usage report!
SVOD market share in the United States
In the second quarter of 2024, Amazon Prime Video and Netflix were the top streaming services in the US, each with 22% of the market share. Max came next with a 14% market share.
Disney+ and Hulu have an 11% and 10% SVOD market share in the United States, respectively.
| Streaming platform | US market share |
|---|---|
| Amazon Prime Video | 22% |
| Netflix | 22% |
| Max | 14% |
| Disney+ | 11% |
| Hulu | 10% |
| Paramount+ | 9% |
| Apple TV+ | 9% |
| Others | 3% |
Source: Statista.
OTT users prefer cheap ad-supported plans
The increasing availability of affordable ad-supported tiers is offering relief to SVOD subscribers. Currently, 46% of households include at least one ad-supported tier in their paid service lineup. 57% of people will always choose an ad-supported plan if they decide to subscribe.
This highlights the need to diversify monetization models to accommodate different consumer preferences and affordability levels.
Source: Global logic.
Content recommendations drive the viewership on OTTs
Subscribers stick around when there’s interesting content that’s easy to find. An OTT app’s success mainly depends on how easy it is to discover content. For example, recommendations drive 80% of shows watched on Netflix and 70% of YouTube views.
Recommendations are so important that 51% of people say “accessibility or search of desired content” ranks in their top three reasons for choosing an OTT app or streaming service.
Did you know Netflix saves over $1 billion every year just by recommending the most relevant content to each user? Well, now you do!
Source: Magnet Global
45% have canceled a streaming subscription within the last year
Customer defections across premium streaming services increased to 6.3% from 5.1% a year earlier. 45% of Americans canceled their SVOD subscriptions within the last year, with 26% citing the platform’s cost as their decision.
Here is a table showing the leading reasons among Americans to cancel their SVOD subscriptions:
| Reason to cancel SVOD subscription | Share of respondents |
|---|---|
| Increasing Cost | 26% |
| Better content elsewhere | 13% |
| Lost interest in content | 10% |
| Not enough time to watch content | 9% |
| Used the service to watch specific content then stopped | 6% |
| Platform confusing or difficult to navigate | 4% |
Statistics on top OTT platforms
Let us look at the statistics of the top OTT players in the United States.
1. Netflix Stats
- Netflix has 277 million subscribers globally with 84.11 million users in the US and Canadian region.
- Netflix has 3,600 movies and 1,800 TV shows in its US library.
- Netflix spent 12 billion on its content production in 2023.
- In Q2 2024, Netflix reported an average monthly revenue of $17.17 per paying streaming customer in North America.
- US adults spend an average of 1 hour and 2 minutes per day watching Netflix.
- Netflix has around 13,000 full-time employees worldwide out of which 9,000 are based in the US and Canada.
2. Amazon Prime Video
- There are over 180 million Amazon Prime Video viewers in the United States.
- Amazon Prime Video is expected to have 250 million global subscribers by 2027.
- Prime Video holds 22% of the OTT market share in the United States.
- 11% of consumers stated that Prime Video is the main reason they subscribe to Amazon Prime service.
- Among Amazon Prime Video subscribers aged 35 to 54, 96% use their subscription to watch TV shows and movies. People aged 18 to 34 do so 89% of the time.
3. Disney+
- Disney Plus has 153.6 million subscribers worldwide as of Q2 2024.
- The average revenue per user for Disney+ is $7.28.
- Disney Plus generated $8.4 billion in revenue during the fiscal year 2023.
- Disney Plus holds an 11% share in the United States OTT market.
- A quarter of Disney Plus subscribers are 25 to 34 years old.
4. Hulu
- Hulu has 50.2 million subscribers as of Q2 2024.
- Hulu users spend an average of 53 minutes per day watching content.
- Hulu holds a 10% share of the United States OTT market.
- 55% of Hulu subscribers have an ad-supported plan, while the remaining 45% of users have an ad-free plan.
- Hulu’s average monthly revenue per paying subscriber in the United States is $11.84.
