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US OTT Market

ID: MRFR/ICT/16673-HCR
100 Pages
Garvit Vyas
October 2025

US OTT Market Research Report: By Type (Game Streaming, Audio Streaming, Video Streaming, Communication), By Streaming Devices (Smartphones and Tablets, Desktops and Laptops, IPTV and Consoles), By Monetization Model (Subscription-Based, Advertising-based, Transaction-Based) and By Service verticals (Media and Entertainment, Education and Learning, Gaming, Service Utilities) - Forecast to 2035

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US OTT Market Infographic
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US OTT Market Summary

As per MRFR analysis, the US ott market Size was estimated at 16.12 USD Billion in 2024. The US ott market is projected to grow from 16.55 USD Billion in 2025 to 21.54 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 2.67% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The US OTT Market is experiencing robust growth driven by evolving consumer preferences and technological advancements.

  • The largest segment in the US OTT Market is subscription video on demand (SVOD), which continues to dominate consumer spending.
  • The fastest-growing segment is ad-supported video on demand (AVOD), reflecting a shift in viewer preferences towards free content options.
  • Enhanced user experience through personalized recommendations and seamless interfaces is becoming a key differentiator among platforms.
  • Rising demand for streaming content and increased investment in original programming are major drivers propelling market expansion.

Market Size & Forecast

2024 Market Size 16.12 (USD Billion)
2035 Market Size 21.54 (USD Billion)

Major Players

Netflix (US), Amazon Prime Video (US), Disney+ (US), Hulu (US), Apple TV+ (US), HBO Max (US), YouTube (US), Paramount+ (US)

US OTT Market Trends

The ott market in the United States is currently experiencing a dynamic evolution, driven by shifting consumer preferences and technological advancements. As viewers increasingly favor on-demand content, traditional broadcasting methods are gradually losing ground. This transition is characterized by a growing demand for diverse programming, including niche genres and international content, which reflects the changing tastes of the audience. Furthermore, the rise of mobile streaming has transformed how consumers access entertainment, allowing for greater flexibility and convenience. This trend suggests that the ott market is not only expanding but also diversifying, catering to a broader range of interests and demographics. In addition, the competitive landscape of the ott market is intensifying, with numerous platforms vying for consumer attention. Major players are investing heavily in original content to differentiate themselves and attract subscribers. This strategy appears to be effective, as exclusive programming often drives viewer engagement and loyalty. Moreover, partnerships between content creators and distribution platforms are becoming more prevalent, indicating a collaborative approach to content delivery. Overall, the ott market is poised for continued growth, with innovation and consumer-centric strategies at the forefront of its development.

Increased Subscription Services

The trend towards multiple subscription services is evident, as consumers opt for various platforms to access a wider array of content. This shift indicates a preference for tailored viewing experiences, allowing users to curate their entertainment choices according to personal interests.

Enhanced User Experience

Improvements in user interface and experience are becoming a focal point for ott market providers. Streamlined navigation, personalized recommendations, and advanced search functionalities are being prioritized to enhance viewer satisfaction and retention.

Focus on Original Content

There is a notable emphasis on producing original content among ott market platforms. This strategy not only attracts new subscribers but also fosters brand loyalty, as unique programming becomes a key differentiator in a crowded marketplace.

US OTT Market Drivers

Shift Towards Mobile Consumption

The ott market is witnessing a significant shift towards mobile consumption, as more viewers opt to watch content on smartphones and tablets. Recent data indicates that mobile devices account for nearly 50% of all streaming traffic in the US, highlighting the importance of optimizing content for mobile platforms. This trend is prompting ott providers to develop mobile-friendly applications and enhance their user interfaces for smaller screens. Additionally, the rise of 5G technology is expected to further boost mobile streaming capabilities, allowing for faster download speeds and improved video quality. As mobile consumption continues to grow, the ott market may need to adapt its strategies to cater to this evolving audience.

Rising Demand for Streaming Content

The ott market is currently experiencing a notable surge in demand for streaming content. This trend is driven by changing consumer preferences, as audiences increasingly favor on-demand viewing over traditional television. In 2025, it is estimated that approximately 80% of households in the US subscribe to at least one streaming service, reflecting a significant shift in media consumption habits. This growing appetite for diverse content, including movies, series, and documentaries, is compelling providers to expand their libraries and invest in exclusive offerings. Consequently, the ott market is likely to see increased competition among platforms, which may lead to innovative content strategies and pricing models to attract and retain subscribers.

Growing Popularity of Bundled Services

The ott market is experiencing a growing trend towards bundled services, as consumers seek more value from their subscriptions. Many providers are now offering packages that combine multiple streaming services, internet access, and even mobile plans. This approach not only simplifies the consumer experience but also encourages higher subscription rates. In 2025, it is estimated that nearly 30% of US households will opt for bundled service offerings, reflecting a shift in consumer behavior towards convenience and cost-effectiveness. As a result, the ott market may see an increase in partnerships and collaborations among service providers, further enhancing the competitive landscape.

Technological Advancements in Streaming

Technological innovations are playing a crucial role in shaping the ott market. The proliferation of high-speed internet and advancements in streaming technology have enhanced the viewing experience for consumers. As of 2025, over 90% of US households have access to broadband internet, enabling seamless streaming of high-definition content. Moreover, the integration of artificial intelligence and machine learning in content recommendation systems is improving user engagement and satisfaction. These technological developments not only facilitate better content delivery but also empower platforms to analyze viewer preferences more effectively. As a result, the ott market is likely to witness a rise in personalized content offerings, which could further drive subscriber growth.

Increased Investment in Original Programming

The ott market is currently characterized by a marked increase in investment in original programming. Streaming platforms are recognizing the value of exclusive content in attracting and retaining subscribers. In 2025, it is projected that spending on original content by major players in the ott market will exceed $20 billion in the US alone. This trend is not only fostering creativity and innovation within the industry but also intensifying competition among platforms. As providers strive to differentiate themselves, the focus on high-quality original programming is likely to reshape the content landscape, offering viewers a wider array of choices and enhancing overall engagement.

Market Segment Insights

By Type: Video Streaming (Largest) vs. Game Streaming (Fastest-Growing)

The US ott market showcases a diverse array of segments, with video streaming commanding the largest share, reflecting the high consumer demand for on-demand content. Game streaming, while smaller in market share compared to video, is witnessing a remarkable surge due to advancements in gaming technology and a rise in eSports popularity. This dynamic competition drives a vibrant market landscape, with each segment carving out its unique consumer base. Growth trends indicate that game streaming is on the rise, driven by younger demographics and innovations in cloud gaming, allowing users easier access to a wider range of games. Additionally, the penetration of high-speed internet and mobile devices has catalyzed this growth, making it more accessible. Comparatively, video streaming is established in consumer habits, supported by an expansive library of content and subscription models that attract a broad audience.

Video Streaming: Dominant vs. Game Streaming: Emerging

Video streaming dominates the US ott market, characterized by a vast array of content offerings across various platforms that cater to diverse viewer preferences. Major players in this space benefit from exclusive deals and extensive libraries, ensuring their stronghold on the market. On the other hand, game streaming is rapidly emerging, particularly appealing to younger audiences who seek interactive entertainment. This segment thrives on community engagement and live interaction, facilitated by platforms that not only offer gameplay but also create interactive viewing experiences. As both segments evolve, their characteristics will increasingly impact consumer behavior, paving the way for innovative content formats and engagement strategies.

By Streaming Devices: Smartphones and Tablets (Largest) vs. IPTV and Consoles (Fastest-Growing)

In the US ott market, the landscape of streaming devices is dominated by smartphones and tablets, which capture the largest share of the audience. This segment has established itself as the go-to choice for consumers looking for portability and convenience in streaming content. On the other hand, IPTV and consoles are gaining traction, appealing to users who prefer a more traditional viewing experience with enhanced functionalities and gaming capabilities. The growth trends show a strong inclination towards IPTV and consoles, as these devices become increasingly integrated with advanced technologies like cloud gaming and 4K streaming. The surge in gaming and interactive content consumption propels this segment forward, making it the fastest-growing choice among users. The evolution of these devices positions them as essential for a comprehensive OTT experience, driving innovations across the market.

Smartphones and Tablets (Dominant) vs. IPTV and Consoles (Emerging)

Smartphones and tablets have solidified their dominance in the US ott market due to their high penetration and user-friendly interfaces. Nearly every consumer owns a smartphone, making it an indispensable device for streaming on-the-go. With the continuous improvement in mobile networks and streaming applications, this segment retains its position as the primary choice for accessing OTT content. Meanwhile, IPTV and consoles are emerging as strong alternatives, particularly appealing to consumers seeking enhanced viewing experiences that include not just traditional streaming but also gaming and live television. As these devices evolve with better performance and new features, they are set to carve out a significant niche in the competitive streaming landscape, driven by the growing interest in hybrid entertainment formats.

By Monetization Model: Subscription-Based (Largest) vs. Advertising-Based (Fastest-Growing)

In the US ott market, the monetization model has seen diverse strategies in place. Subscription-Based models dominate the landscape, capturing a significant share of the viewer base. This model leverages a consistent revenue stream and solid user loyalty, allowing for extensive content libraries. On the other hand, Advertising-Based models are experiencing rapid growth, driven by increasing digital ad spending and viewer willingness to engage with ad-supported content. Growth trends in the US ott market show a dynamic shift as Subscription-Based models continue to maintain their lead. However, the rise of Advertising-Based models reflects changing viewer preferences, particularly among younger demographics who favor free or lower-cost options. Transaction-Based approaches remain steady, appealing to specific use cases but lacking the expansive reach of the other models. Factors such as content variety, targeted advertising, and the emergence of hybrid models are fostering competition and innovation across the segment.

Subscription-Based (Dominant) vs. Advertising-Based (Emerging)

The Subscription-Based model in the US ott market stands as the dominant force, attracting subscribers through exclusive content, ad-free experiences, and a familiar payment structure. This model benefits from established players with significant brand loyalty, creating a stable user base. In contrast, the Advertising-Based model is emerging strongest within the market, offering an accessible alternative for viewers unwilling to commit to recurring payments. Its rapid growth is bolstered by advancements in targeted advertising technology and increased acceptance of ad-supported viewing experiences. While Subscription-Based services focus on retention and premium offerings, Advertising-Based platforms depend on broad reach and engagement, leading to a competitive coexistence where both can thrive in the evolving landscape.

By Service Verticals: Media and Entertainment (Largest) vs. Gaming (Fastest-Growing)

In the US ott market, the Media and Entertainment segment commands a significant portion, leading the market with its diverse offerings. This segment includes streaming services that cater to a wide range of audiences, providing video content, series, and movies. Meanwhile, Gaming continues to capture interest rapidly, with an expanding user base seeking immersive experiences including eSports and interactive storytelling. As consumer preferences shift toward on-demand access, both segments are benefitting from increasing engagement. Growth trends indicate that while Media and Entertainment remains established, the rise of Gaming is fueled by advancements in technology, including cloud gaming and mobile accessibility. Additionally, younger demographics are driving the demand for interactive content and multiplayer experiences. The US ott market is poised for continued growth as these service verticals adapt and innovate to meet changing consumer demands.

Media and Entertainment: Dominant vs. Gaming (Emerging)

The Media and Entertainment segment is characterized by its extensive range of offerings, including movies, series, and documentaries, appealing to various demographic groups. It occupies a dominant position in the US ott market, as traditional and digital content amalgamate to provide unparalleled choices to viewers. Significant players utilize subscription and advertising models to monetize content effectively. In contrast, Gaming is emerging rapidly, fueled by new technology and gamer-centric content. It is increasingly recognized not just as entertainment but also as a social platform, fostering community engagement through multiplayer interactions and live streaming. Both segments show dynamic qualities; however, Media and Entertainment continues to hold a substantial market share while Gaming demonstrates remarkable growth potential.

Get more detailed insights about US OTT Market

Key Players and Competitive Insights

The OTT market in the US is characterized by intense competition and rapid evolution, driven by technological advancements and shifting consumer preferences. Major players such as Netflix (US), Amazon Prime Video (US), and Disney+ (US) are at the forefront, each adopting distinct strategies to maintain and enhance their market positions. Netflix (US) continues to focus on original content production, investing heavily in diverse programming to attract a broad audience. Meanwhile, Amazon Prime Video (US) leverages its extensive e-commerce ecosystem to bundle services, enhancing customer loyalty through value-added offerings. Disney+ (US), with its rich library of beloved franchises, emphasizes family-oriented content, positioning itself as a leader in the family entertainment segment. Collectively, these strategies contribute to a competitive landscape that is both dynamic and multifaceted.

In terms of business tactics, companies are increasingly localizing content to cater to regional tastes, optimizing their supply chains to ensure timely delivery of services. The competitive structure of the OTT market appears moderately fragmented, with several key players vying for market share. This fragmentation allows for innovation and niche offerings, as smaller players can carve out specific segments while larger companies dominate the mainstream market.

In October 2025, Netflix (US) announced a partnership with a leading gaming company to develop interactive content, which could potentially redefine viewer engagement. This strategic move not only diversifies Netflix's content offerings but also taps into the growing intersection of gaming and streaming, appealing to a younger demographic that seeks immersive experiences. The implications of this partnership may extend beyond content, influencing how audiences interact with media.

In September 2025, Amazon Prime Video (US) launched a new initiative aimed at enhancing its user interface through AI-driven recommendations. This development is significant as it reflects a broader trend towards personalization in content delivery, potentially increasing viewer retention and satisfaction. By utilizing advanced algorithms, Amazon Prime Video (US) aims to create a more tailored viewing experience, which could lead to higher subscription rates and reduced churn.

In August 2025, Disney+ (US) expanded its content library by acquiring rights to several international films, thereby enhancing its global appeal. This strategic acquisition is indicative of Disney+'s commitment to becoming a comprehensive entertainment platform, catering to diverse audiences. By broadening its content offerings, Disney+ (US) positions itself to compete more effectively against rivals, particularly in markets where local content is paramount.

As of November 2025, the OTT market is witnessing trends such as increased digitalization, sustainability initiatives, and the integration of AI technologies. Strategic alliances are becoming more prevalent, as companies recognize the value of collaboration in enhancing their competitive edge. Looking ahead, it appears that competitive differentiation will increasingly hinge on innovation and technological advancements rather than solely on pricing strategies. The focus is shifting towards creating unique, engaging content and ensuring reliable service delivery, which may redefine the parameters of competition in the OTT landscape.

Key Companies in the US OTT Market market include

Industry Developments

The US OTT Market has seen significant developments recently, particularly with growth in viewership and market valuation as subscribers flock to various platforms. Companies like Netflix and Disney are reporting strong quarterly earnings, capitalizing on their original programming, while Hulu continues to expand its content library to attract diverse audiences. In terms of mergers and acquisitions, Warner Bros Discovery has been in talks for consolidating streaming segments, while reports in October 2023 indicated that Sony is exploring partnerships with prominent OTT players to enhance its content distribution.

The competition remains fierce with platforms such as Amazon, Apple, and Roku investing heavily in content creation to maintain their user base. Moreover, Paramount is adjusting its strategy to integrate advertising within its streaming services, responding to emerging trends in viewer preferences. Looking back, April 2021 saw ViacomCBS rebranding as Paramount Global to better align its streaming ambitions with its traditional media assets. The US OTT Market landscape continues to adapt rapidly, driven by technological advancements and changing consumer behavior, impacting how content is consumed across multiple devices and platforms.

Future Outlook

US OTT Market Future Outlook

The OTT market in the US is projected to grow at a 2.67% CAGR from 2024 to 2035, driven by technological advancements, increased content diversity, and evolving consumer preferences.

New opportunities lie in:

  • Subscription bundling with telecom services to enhance customer retention.
  • Investment in original content production to attract niche audiences.
  • Partnerships with smart device manufacturers for integrated viewing experiences.

By 2035, the OTT market is expected to solidify its position as a dominant entertainment platform.

Market Segmentation

US OTT Market Type Outlook

  • Game Streaming
  • Audio Streaming
  • Video Streaming
  • Communication

US OTT Market Service Verticals Outlook

  • Media and Entertainment
  • Education and Learning
  • Gaming
  • Service Utilities

US OTT Market Streaming Devices Outlook

  • Smartphones and Tablets
  • Desktops and Laptops
  • IPTV and Consoles

US OTT Market Monetization Model Outlook

  • Subscription-Based
  • Advertising-Based
  • Transaction-Based

Report Scope

MARKET SIZE 2024 16.12(USD Billion)
MARKET SIZE 2025 16.55(USD Billion)
MARKET SIZE 2035 21.54(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR) 2.67% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Billion
Key Companies Profiled Netflix (US), Amazon Prime Video (US), Disney+ (US), Hulu (US), Apple TV+ (US), HBO Max (US), YouTube (US), Paramount+ (US)
Segments Covered Type, Streaming Devices, Monetization Model, Service Verticals
Key Market Opportunities Integration of advanced analytics and personalized content delivery enhances user engagement in the ott market.
Key Market Dynamics Intensifying competition among platforms drives innovation and consumer choice in the evolving streaming landscape.
Countries Covered US

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FAQs

What is the projected market size of the US OTT Market in 2024?

The US OTT Market is expected to be valued at 15.5 USD Billion in 2024.

What is the expected market value of the US OTT Market by 2035?

By 2035, the US OTT Market is projected to reach a value of 80.0 USD Billion.

What is the compound annual growth rate (CAGR) for the US OTT Market from 2025 to 2035?

The US OTT Market is expected to grow at a CAGR of 16.09% during the forecast period from 2025 to 2035.

Which segment of the US OTT Market is expected to have the highest growth by 2035?

Video streaming is expected to dominate with a projected value of 42.0 USD Billion by 2035.

What will be the market value of audio streaming in the US OTT Market by 2035?

Audio streaming is projected to reach a market value of 15.0 USD Billion by 2035.

How much is the game streaming segment valued at in 2024?

In 2024, the game streaming segment is valued at 2.5 USD Billion.

What will be the growth value of the communication segment in the US OTT Market by 2035?

The communication segment is expected to grow to a value of 11.0 USD Billion by 2035.

Who are the key players operating in the US OTT Market?

Major players in the US OTT Market include Apple, Roku, Vudu, Sony, Disney, Warner Bros Discovery, Hulu, and Netflix.

What is the estimated market value for the video streaming segment in 2024?

The video streaming segment is estimated to be valued at 8.0 USD Billion in 2024.

What are the primary growth drivers for the US OTT Market?

The primary growth drivers for the US OTT Market include technological advancements, increased internet penetration, and changing viewing habits.

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