The OTT market is projected to witness innovative and advanced transformation, which allow the users to access everything they prefer at a single space.
More people are opting for the online mode of entertainment and as a result the OTT market is constantly growing. Here, we are going to showcase a projection of OTT growth in the USA from the period of 2021 to 2026/27.
Different Attributes for OTT Growth in the USA
Internet Penetration in the United States of America
In 2021, the internet users in the United States of America were 417.36 million and there were 424.56 million internet users in the United States in January 2022 and is projected to be 448.55 million by 2026
Internet penetration rate is 92.0 percent of the total population in Jan 2022.
Number of Users and Devices connected
The number of users and connected devices is on rise at a rate of 2.3% compound annual growth rate (CAGR) from 2021 to 2026
|
Types of Devices |
2021 | 2026 |
| Smart Phones | 297.6 million | 314.5 million |
| Smart TVs | 208.5 million | 274.2 million |
| Desktops/laptops | 168.4 million | 171.2 million |
| Tablets | 164.1 million | 166 million |
| Game Consoles | 84.5 million | 83.4 million |
Devices or users consuming video in general
In 2021, U.S. adults spent 167 minutes per day watching TV video content, and 149 minutes per day watching digital video. Forecasts show that digital video consumption will surpass TV viewing time between 2022 and 2026.
AVOD Viewers
Forecast data from February 2022 suggest that the number of ad-supported video-on-demand (AVOD) viewers in the U.S. will amount to around 140 million by the end of the year. It was projected that the viewership will further grow to over 170 million in 2026.
SVOD Viewers
A forecast from September 2021 suggested that the gross number of video-on-demand subscriptions in the United States would grow by 33 % from the end of 2021 to 2026, reaching 450 million. The source also found that one SVOD household in the U.S. will pay for more than four platforms by 2026.
PPV Viewers
In 2021, around 96.4 million people in the United States used Pay-per-View (TVoD) services.
- User penetration is 27.9% in 2022 and is expected to hit 30.8% by 2027.
- US residents spend an average of 323 minutes per week watching video content – on mobile phones alone!
Monetization Models Projection
SVOD Market
A forecast from September 2021 suggested that the gross number of video-on-demand subscriptions in the United States would grow by 33% from the end of 2021 to 2026, reaching 450 million.
AVOD Market
Forecast data from February 2022 suggest that the number of ad-supported video-on-demand (AVOD) viewers in the U.S. will amount to around 140 million by the end of the year. It was projected that the viewership will further grow to over 170 million in 2026.
PPV /TVOD Market
- Revenue in the Pay-per-View (TVoD) segment is US $2.10 billion in 2022.
- Revenue is expected to show an annual growth rate (CAGR 2022-2027) of 5.56%, resulting in a projected market volume of US $2.76 bn by 2027.
For more information on monetization models, download our detailed report here – OTT Market Projection – The United States of America
Smart TV Projection
The United States OTT Market is expected to register a CAGR of approximately 11.22% in terms of revenue and approximately 2.25% in terms of subscribers over the forecast period (2021-2026).
Number of connected TV households in the United States from 2022 to 2026 (in millions)
A forecast from February 2022 suggested that there will be 117 million U.S. households with a connected TV device in 2026. For comparison, the number of total households in the United States is estimated to reach 135 million by 2026.
Half of North American viewers already download mobile apps after watching a CTV ad
50% of North American consumers have downloaded a mobile app after seeing an ad, and 53% of consumers say they are likely or very likely to do so using QR codes.
Average Time Spent Watching Streaming Content on CTV, Per Week
On average, consumers watch 5.3 hours of streaming content on CTV per week. This number is 11% higher in North America at 5.9 weekly hours.
Conclusion
The OTT market in the U.S.A is projected to grow at a rate of 11.22% CAGR by 2026. The increasing trend of online streaming channels is the major factor predicted to boost the growth of the over-the-top (OTT) market over the forecast period. Additionally, the OTT platforms deliver product services straightaway to viewers through online streaming by eliminating broadcasting cables which are expected to attract more customers to avail of OTT services.
To get a detailed analysis of OTT market projection, download our report OTT Market Projection for the USA (2021-2026).
