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Europe OTT Market Overview and Projections (2022-2027) (2024 Updated)

Ishita Banik Published on : 22 February 2023
Europe OTT Market

 

Over the past ten years, the media and entertainment industry has undergone a significant upheaval, with OTT streaming rapidly displacing traditional broadcasting. There are countless reasons why the global OTT industry has emerged as one of the most lucrative sectors that small to big organizations are betting on, including a vast selection of content, multiple device and platform compatibility, smooth streaming, and increased internet consumption.

When it comes to revenue, potential for growth, new prospects, market size, and a host of other variables, the Europe OTT market is one of the fastest-growing regions in the world. In this blog, you can learn more about the forecast, growth factors, and other aspects of the Europe OTT industry.

 

A Glance at Europe OTT Market

The global OTT market is anticipated to reach US $1241.6 billion by 2030 and expand at a CAGR of 26.42% from 2022 to 2030. Europe continues to be a key region that considerably contributes to the growth of the global OTT market.

In 2024, the European OTT Video market is forecasted to soar to US $52.70 billion, reflecting an impressive annual growth rate of CAGR 5.59% during 2024 to 2028. This upward trajectory is set to propel the market volume to an estimated US $65.52 billion by 2028, underlining a robust and dynamic industry expansion.

Together with increased internet usage and smart device use, the Europe OTT market experienced stable expansion in key areas such as OTT video advertising, pay per view, SVOD, and others. OTT revenue in Western Europe is anticipated to increase from US $26 billion in 2021 to US $45 billion in 2027 while the leading countries like the United Kingdom, Germany, and France are subject to cater to Europe OTT market growth further in the coming years.

 

The Key Growth Factors and Projections of the Europe OTT Market

Let’s have a look at the key growth factors and projections of the Europe OTT market.

1. Increasing Internet Use

By 2023, over 90% of Europeans will use the internet, accounting for nearly 14% of internet usage worldwide while compared to 72% in 2011, the proportion of homes in Europe with internet connectivity has significantly increased to 92% in 2022.

2. Rising Use of Video

More than 288 million people watched digital videos in Western Europe at least once per month in 2022, and by 2026, it’s anticipated the number would top 300 million.

Digital videos were viewed by 79.5% of internet users in 2022, exceeding the 77.3% global average and this figure is set to rise sharply through 2027 and beyond.

3. Top Monetization Models

The key monetization models used in the European OTT market, along with their corresponding shares, revenue predictions, and other relevant information, are shown below.

SVOD

  • In 2023, it is anticipated that the Europe SVOD (Subscription Video On Demand) market would generate US $17.39 billion.
  • By 2027, there will be over 275 million SVOD customers in the Europe OTT market.
  • The revenue in this sector is anticipated to grow at a CAGR of above 10% during the forecast period of 2023 to 2026.
  • The SVOD segment’s predicted market size is expected to surpass US $26 billion by 2027.

AVOD

With 40% of CTV users in the UK watching AVOD everyday, AVOD (Ad-Supported Video on Demand) revenue in Europe will reach US $6.75 billion in 2022. Throughout the anticipated period of 2022 to 2027, the revenue in the Europe AVOD segment is expected to double.

PPV/TVOD

  • Pay per View and Transactional Video on Demand (PPV/TVOD) revenue in Europe is anticipated to reach $3.82 billion US dollars in 2023.
  • By 2027, the size of the European TVOD market is anticipated to reach $4.97 billion USD.
  • In the PPV/TVOD category, the ARPU is anticipated to reach US $29.69 in 2023.
  • By 2027, 141 million people are anticipated to watch TV on demand in Europe.
  • This segment’s revenue is expected to increase at a CAGR of 6.78% during the forecast period of 2022 to 2027.

4. Growing Live Video Consumption

The growing live video consumption has made the live video streaming segment highly lucrative in Europe. The revenues generated in the live sports and music segments and their respective projections are as shown below –

Segment

Base Year (2022) Revenue 

Projected Revenue in 2023

Projected Revenue in 2024

Live Music Streaming

US $9.72 billion

US $12.43 billion

US $13.21 billion

Live Sports

US $7.59 billion

US $8.05 billion

US $8.39 billion

 

The Bottom Line

Europe is the second-largest contributor to the worldwide OTT market after North America, driven by expanding online video consumption, rising 5G service penetration, usage of smart devices, and shifting consumer viewing habits.

Leading OTT providers like Netflix, Hulu, and Amazon Prime, as well as recent market newcomers, are progressively ratcheting up the rivalry. The major countries of Europe, including the UK, Germany, France, Spain, and Italy, to name a few, will all contribute to the market’s exponential growth through 2026 and beyond.

To have an in-depth view of the Europe OTT market as well as the U.K, Germany, and France OTT market and projections, read our latest Europe OTT market report.

Written by: Ishita Banik

Ishita is a Content Writer with Muvi Marketing Team. Apart from business writing, she is also an acclaimed author of three best seller romantic thriller novels. In 2020, she got featured in The Hindustan Times, a leading news portal as an inspirational Indian author.

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