$103 Billion Worldwide Video Streaming Service Industry to 2027 - by Streaming Type, Platform, End-user and Geography
DUBLIN, Sept. 12, 2022 /PRNewswire/ -- The "Video Streaming Service Market - Forecasts from 2022 to 2027" report has been added to ResearchAndMarkets.com's offering.
The video streaming service market is estimated to be valued at US$103.567 billion in 2020. Video streaming service is the delivery and consumption of multimedia through online services which allow users to watch videos without the need for downloading them.
Live-streaming is the transmission of content in real-time during creation, similar to how live television transmits programming across several channels. The video streaming service market is driven by the increase in consumers and is expected to increase more in size, as newer technological advancements are released. The adoption of 5G technology is another significant factor in the increasing demand for streaming services.
The convenience of watching movies, series, videos, and live programs without having to leave the house influences the video streaming service market. With the adoption of on-demand entertainment, streaming services allow us to watch what we want to watch.
This is one of the main reasons for the rise of streaming services such as Netflix, Amazon Prime Video, etc. The global television market has also been reportedly declining. According to Ofcom, despite the fact that more individuals watched broadcast television during the pandemic, the tv's proportion of overall viewership declined from 67% to 61% in 2020. Young people aged 16 to 34 are also quitting live television. They spend more time on streaming services (91 minutes) and YouTube (72 minutes) each day than they do viewing live television (65 minutes).
Development of 5G technology
The introduction of 5G networks will revolutionize the way bandwidth-intensive, high-quality, and high-demand video is delivered to mobile devices. 5G is expected to provide speeds of up to 1 Gbps. which is around 10 times faster than older 4G networks, which only provide speeds between 100 Mbps and 200 Mbps.
Since 5G can support a much denser network of base stations, greater bandwidth is accessible in high-traffic areas such as sports arenas and music venues. 5G technology is also expected to decrease latency in video streaming, even at higher qualities like 8K streaming, which would provide a much better user experience for consumers. 5G network is also expected to provide better battery efficiency for handheld devices.
Advancements in the video streaming technology
The video streaming service market has seen huge advancements in the past few years. These technological advancements are achieved with the motive of delivering a better viewer experience for the users and in turn, increasing their profits. Amazon announced the launch of its free streaming service known as Amazon Freevee on April 27, this year.
This streaming service is said to work similar to other streaming services such as Amazon Prime Video, Netflix, etc, but with the addition of ads. Amazon also announced that it is going to release exclusive content for this website as well. Microsoft has also been reportedly working to develop a device that allows streaming TV services and games directly to the TV, much like the Amazon Firestick.
Video streaming services have been rapidly growing at a fast pace over the last few years. However, the market has faced a lot of challenges in the last couple of years. The increasing inflation rates are another significant reason for the losses faced by the video streaming industry. Netflix has been raising its prices by a lot in the last couple of years.
This has led customers to opt for better and more economical alternatives such as Amazon Prime Video, which provide the same services, along with a lot of other features at a much lower cost. Netflix has lost tons of subscribers and revenue due to this reason. Netflix reported a loss of about US$50 Billion and a drop of about 35% in their stock price.
These losses are expected to further drop the revenue for the company. Other companies like CNN+ have also failed to make an impression on the market and were shut down after only one of their services. Failures like these have left the market in a state of worry and investors are re-evaluating their decisions to invest in the video streaming market.
Apple's revenue from Russia in the year 2020 amounted to about US$2.5 Billion. Hence Apple might face significant losses owing to the war. With the stoppage of product sales and services from companies like Apple and Samsung, the Russian video streaming market is expected to fall significantly; however, the overall market might not be much affected.
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