Top 7 OTT statistics of 2024 you should care about

1. Viewing devices

Globally, 35.3% of total viewing time is spent watching OTT content on smart TVs. Connected TV devices account for 34.6% of viewing time, followed by mobile phones at 11.3%, desktops at 7.1%, gaming consoles at 6.8%, tablets at 4.8% and other screen devices at 0.2%. 

‍What it means for you

‍The dominance of smart TVs indicates a clear preference among users for large-screen viewing experiences, which may influence content formatting, UI design, and app development strategies for OTT businesses. 

‍Why you should care

‍Understanding where their audience prefers to watch content can guide your investment in platform-specific enhancements. Focusing on optimizing the viewing experience on smart TVs and connected devices can lead to higher user satisfaction, increased engagement, and potentially more subscriptions. Furthermore, OTT services should not neglect regional variations in device usage. Different regions may have different preferences and levels of access to various devices, so adapting offerings accordingly can enhance market penetration and user satisfaction. 

Here is a helpful resource for you to learn more about device distribution in your region: Conviva’s State of Streaming‍

^{‍Source: Statista}

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2. Subscription intentions

A significant majority of OTT users (86%) plan to either retain or expand their subscriptions, highlighting the strong retention and growth potential of OTT platforms. Specifically, 61% of OTT users intend to maintain their current subscriptions, 25% plan to add new subscriptions, and 14% are looking to reduce their number of subscriptions.

What it means for you

This statistic underscores the stability and growth potential within the OTT market. High retention rates indicate user satisfaction and loyalty, while the willingness of a significant portion of users to add new subscriptions signals opportunities for market expansion and revenue growth. The relatively small percentage of users looking to reduce subscriptions suggests that churn rates may remain manageable.

Why you should care

This highlights both the strengths and areas for potential improvement in the market. To capitalize on the 25% of users planning to add new subscriptions, OTT providers should focus on offering compelling new content, exclusive features, or attractive bundle deals. Retaining the 61% of users who plan to maintain their current subscriptions involves ensuring ongoing satisfaction through consistent content quality, user-friendly interfaces, and responsive customer service.

At the same time, understanding the reasons behind the 14% of users looking to reduce their subscriptions can help identify and address pain points, preventing churn and improving retention strategies. Additionally, recognizing regional differences in subscription intentions can help tailor marketing strategies and content offerings to maximize engagement and growth in specific markets.

^{Source: Uscreen}

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3. User preferences for ads

In the U.S., 57% of adults prefer low-cost or free OTT streaming platforms with ads. About 25% of viewers are willing to watch a 10-minute advertisement in exchange for free content, highlighting the acceptance of the AVOD model. Nearly every U.S. household (99%) subscribes to one or more streaming services, and 62% prefer free, ad-supported streaming over paid subscriptions.

What it means for you

This reveals a strong preference for ad-supported models among U.S. viewers. The acceptance of ads in exchange for free or low-cost content suggests a viable path for OTT platforms to monetize through advertising while maintaining or growing their user base. The high subscription rate indicates widespread adoption of OTT services, but the preference for affordability points to a strong shift towards AVOD models.

Why you should care

This statistic shows a significant opportunity to attract and retain viewers through ad-supported content. Offering a free or low-cost tier with ads can expand the audience base, especially among cost-conscious consumers. 

Understanding that a majority of users prioritize affordability without compromising on content quality can guide OTT providers in developing flexible pricing models and ad-supported options. Moreover, recognizing the value viewers place on convenience and flexibility over traditional television can inform strategic decisions in content delivery and platform features.

^{Source: Tubi}

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4. ARPU on a rise

The average revenue per user (ARPU) in the OTT Video market is projected to amount to US$12.18 in 2024. The global ARPU in the 'OTT Video' segment of the media market is forecast to continuously increase between 2024 and 2029, rising by a total of US$6.6 (+8.18%). 

What it means for you

This indicates a positive revenue trajectory for the OTT video market, with ARPU expected to grow steadily over the next several years. The projected increase in ARPU reflects a strong consumer willingness to spend more on OTT services, possibly due to enhanced content offerings, improved user experiences, and the introduction of new monetization strategies.

Why you should care

This highlights the potential for increased profitability and financial stability. The consistent growth in ARPU suggests that users are finding greater value in OTT services, which can be leveraged through strategic investments in content, technology, and user engagement initiatives.

To capitalize on this growth, OTT providers should focus on diversifying their revenue streams, such as incorporating premium content, tiered subscription plans, and innovative advertising solutions. Additionally, understanding regional variations in ARPU can help tailor pricing strategies and content offerings to maximize revenue in different markets. 

^{Source: Statista}

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5. Daily OTT watch time

In 2022, 45.3% of daily watch time (70 minutes per day) was spent on OTT platforms, up from 44% in 2021 and 42.2% in 2020. This trend reflects the growing preference for OTT content over traditional TV viewing.

What it means for you

This statistic demonstrates the increasing dominance of OTT platforms in daily viewing habits. The consistent rise in daily watch time on OTT platforms indicates that consumers are progressively favoring the flexibility and variety offered by OTT services over traditional television. This shift suggests a robust demand for OTT content and an opportunity for OTT providers to capture more audience share.

Why you should care

This statistic underscores a significant shift in consumer behavior towards digital streaming. The growing daily watch time on OTT platforms signifies an expanding window for engagement and monetization. OTT providers can leverage this trend by continually enhancing their content libraries, user experience, and personalization features to keep viewers engaged.

Additionally, understanding this shift allows OTT services to tailor their marketing strategies, focusing on the value of on-demand content and convenience.

^{Source: eMarketer}

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6. Second screen usage

When OTT viewers own a second screen, 65% of them will look up product information on the other screen while watching content on their main screen. This indicates a high level of engagement and interaction with advertisements.

What it means for you

This statistic highlights the growing trend of second-screen usage among OTT viewers. The fact that a significant portion of the audience engages with product information on a second device while consuming content suggests an increased opportunity for interactive and integrated advertising. This indicates that viewers are highly engaged and receptive to ads that prompt immediate action or further exploration.

Why you should care

This statistic represents a valuable opportunity to enhance ad effectiveness and drive consumer action. By understanding and leveraging second-screen behavior, OTT platforms can collaborate with advertisers to create more interactive and engaging ad experiences via relevant ads, QR codes and cross-device campaigns, leading to improved ad performance and higher revenues. 

^{Source: MNTN Research}

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7. User engagement

Approximately 34.97% of users tune in to OTT content multiple times each day, highlighting the widespread integration of OTT services into daily routines. 

What it means for you

This statistic indicates that OTT content has become an integral part of daily life for a significant portion of users. The high frequency of engagement suggests that OTT services are not just supplementary entertainment options but essential components of users' daily routines. This habitual usage underscores the strong attachment users have to their OTT platforms and the consistent demand for fresh and engaging content.

Why you should care

OTT services should care about this statistic because it emphasizes the importance of maintaining a steady stream of high-quality content to keep users engaged. Frequent engagement means that users are continually seeking new content, which presents both an opportunity and a challenge for OTT providers. 

^{Source: MDPI}