OTT-led 'Video Platform Market' to Double in Size

Samjong KPMG Report Released: $13.2 Billion in 2024 to $25.6 Billion in 2028
'Legacy Media' Viewership Declines, OTT Usage Rising
"Platform Diversification and Collaboration Systems Are Key"

Samjong KPMG published a report on the 22nd titled 'New Changes in the Video Platform Industry Led by OTT.' The report highlights that the global video platform market is expected to expand from $13.2 billion in 2024 to $25.6 billion in 2028. In particular, the OTT (Over-The-Top) market is projected to grow to $17 billion by 2028, marking the largest market size and growth rate among paid video platforms.

According to the report, the usage rate of the domestic OTT industry continues to increase, with 77% of the population using paid and free OTT platforms in 2023. In contrast, viewership ratings for traditional video content providers such as terrestrial broadcasting and paid broadcast channels are declining.

The report analyzed major changes in the core elements of the video industry: content, platform, network, and device. First, on the content side, demand for original content and live streaming content is increasing. Notably, TVING secured the broadcasting rights for the Korea Professional Baseball starting in 2024, expecting an increase in paid subscribers.

On the platform side, the boundaries between paid OTT and free OTT are blurring, and hybrid revenue models are expanding. Major platforms like Netflix and YouTube are diversifying their operations by introducing ad-based revenue models, which play a crucial role in increasing sales.

From the network perspective, as social media platforms become more user-friendly, both short-form and long-form content are rising simultaneously. For example, the production company 'Teo,' founded by PD Kim Tae-ho, distributes long-form content, and Kakao Entertainment is actively promoting this as well.

Finally, due to the diversification of devices, new players such as smart TVs and tablet PCs are emerging. The FAST (Free Ad-supported Streaming TV) platform, which offers major content for free in exchange for watching ads, is growing, with Samsung Electronics and LG Electronics integrating it into their devices.

Choi Jin-seok, partner at Samjong KPMG’s Electronics, Information & Communication Media Division, emphasized, “At a time when the diversification of platforms providing video content is progressing, the boundaries of revenue models are breaking down,” adding, “It is essential to develop collaboration systems among players and seek ways to maximize competitiveness.”

This content was produced with the assistance of AI translation services.