U.S. Video Streaming Market (By Streaming Type; By Solution; By Platform; By Service; By Revenue Model; By Deployment Type; By User) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The U.S. video streaming market size was estimated at around USD 18.82 billion in 2023 and it is projected to hit around USD 114.89 billion by 2033, growing at a CAGR of 19.83% from 2024 to 2033.

Key Pointers

• By Streaming Type, the live video streaming segment held the largest revenue share of 65% in 2023.
• By Solution, the over-the-top (OTT) segment contributed the largest revenue share in 2023.
• By Platform, the smartphones and tablets segment accounted for the highest market revenue share in 2023.
• By Service, the training and support service registered the maximum market share in 2023.
• By Revenue Model, the subscription-based model generated the maximum market share in 2023.
• By Deployment Type, the cloud deployment segment exhibited the largest revenue share in 2023.
• By User, the consumer segment accounted for the largest revenue share in 2023.

U.S. Video Streaming Market Overview

The U.S. video streaming market has witnessed significant growth and evolution in recent years, becoming a dominant force in the entertainment industry. As technology continues to advance and consumer preferences shift, understanding the key dynamics and trends in this market is essential for industry stakeholders and enthusiasts alike.

U.S. Video Streaming Market Growth

The robust growth of the U.S. video streaming market can be attributed to several key factors. Firstly, the increasing ubiquity of high-speed internet and widespread adoption of smart devices have facilitated seamless access to streaming platforms, contributing to a larger user base. Secondly, the diversified and expansive content libraries offered by major players like Netflix, Amazon Prime Video, Hulu, and Disney+ have played a pivotal role in attracting and retaining subscribers. The technological advancements in streaming, including enhanced video quality and personalized recommendations, have significantly improved the overall user experience, driving continued market expansion. Additionally, the market's resilience and adaptability to evolving consumer preferences, coupled with ongoing investments in original content, international expansion, and emerging technologies, position it for sustained growth in the foreseeable future.

U.S. Video Streaming Market Trends:

• Rise of Original Content: Streaming platforms are increasingly investing in the creation of original content, including exclusive series, movies, and documentaries. This trend not only sets platforms apart in a competitive market but also caters to diverse audience preferences, driving subscriber growth.
• Fragmentation and Competition: The U.S. video streaming market has witnessed a surge in new entrants, leading to increased fragmentation. With services like Apple TV+, HBO Max, and Peacock joining established players, consumers now have a plethora of options, contributing to intense competition and innovation.
• Live Streaming and Sports Content: Streaming services are expanding beyond traditional entertainment, incorporating live sports events and real-time streaming. Partnerships with sports leagues and exclusive broadcasting rights are becoming increasingly common, attracting sports enthusiasts and expanding the streaming market's demographic reach.
• Ad-supported Models: In response to subscription fatigue and to capture a wider audience, some streaming services are incorporating ad-supported models. This approach provides users with free or lower-cost options, supported by advertisements, offering an alternative revenue stream for streaming platforms.
• Integration of Artificial Intelligence (AI): Streaming services are leveraging AI for content recommendations, user personalization, and predictive analytics. By understanding viewer preferences and behavior, platforms can enhance content discovery, engagement, and overall customer satisfaction.

Streaming Type Insights

The live video streaming segment spearheaded the market, accounting for 65% of the U.S. video streaming market revenue share in 2023. An unprecedented surge in internet penetration and heightened demand for ad-free content, analytics tracking, and mobile viewing have boded well for the market forecast. Live streaming in 4K, 3D, and mono formats modes will continue to receive an impetus. Stakeholders are expected to bank on live streaming for increased engagement and real-time feedback.

While live streaming will continue to amass traction, non-linear (video-on-demand) streaming will be highly sought-after across the region. American consumers have depicted a strong demand for VOD due to convenience and ease as it is pre-recorded and can be made available for streaming anytime. In essence, video-on-demand has added a fillip to the U.S. market with surging footfall of summits, town halls, exhibitions, and conferences. U.S. consumers have also depicted demand for news and sports (apart from series and movies), prompting industry leaders to infuse funds into the non-linear portfolio.

Solution Insights

The over-the-top (OTT) segment contributed the largest revenue share in 2023. Video streaming behemoths, such as Netflix, Disney+ and Amazon Prime Video, have observed notable growth since the lockdown. OTT giants have even joined forces with film studios and producers to gain a competitive edge in the market. Predominantly, advanced IT infrastructure and expanding footfall of 5G have fared well for the market growth.

Pay TV has continued to gain an impetus as a home entertainment device in the North American country. While the challenges posed by OTT have been evident, sports enthusiasts have often banked on cable TV to watch live games. Moreover, U.S. consumers seek pay TV networks for live broadcasts of events, news updates, live broadcasts and breaking stories. Besides, areas with unreliable internet connections are expected to observe robust demand for pay TV.

Platform Insights

The smartphones and tablets segment accounted for the largest market revenue share in 2023. The growth is partly due to the soaring adoption of advanced devices across the region. In April 2023, the U.S. Census Bureau noted that four out of five households with children owned tablets. To put this in perspective, 64% of U.S. households owned a tablet computer in 2021. Furthermore, 5G penetration and soaring demand for iPhone and Android devices reinforce the growth outlook of smartphones.

Gaming consoles have emerged as one of the most common home entertainment devices. Flagship products of Xbox and Microsoft have redefined the gaming industry. With internet connection becoming more robust and 5G becoming palpable, gaming traffic has witnessed an unprecedented spike. The emergence of 4K TVs has furthered the penetration of home consoles. Prevailing trends suggest AR/VR-based consoles could hold traction in the ensuing period.

Service Insights

The training and support service contributed significant U.S. video streaming market revenue share in 2023 and will continue to gain an uptick on the back of soaring demand for employee training and development. Video streaming (both live and pre-recorded) has bridged the gap between learners and educators, emerging as a game-changer in the training and support landscape. To illustrate, live video streaming can bolster real-time collaboration and eradicate the need for travel and accommodation expenses.

Managed services have received an impetus to take away the burden of maintaining the infrastructure, underpin the personalization experience, and prevent downtime. Besides, video conferencing solutions have gained an uptake as corporates continue to bank on innovative technologies. Furthermore, managed OTT platforms have gained ground in the wake of surging demand for subscription management, content management and content analytics.

Revenue Model Insights

The subscription-based model depicted the largest revenue share in 2023 and is expected to gain considerable traction during the forecast period. Subscription-based revenue (with recurring annual or monthly fees) has amassed huge popularity across the U.S. The trend has prompted industry leaders to inject funds into high-quality and original content. Lately, video streaming service providers have focused on OTT content covering meditations, training, workouts and recipes.

The advertising segment is poised to exhibit notable growth against the backdrop of the expectation of increased revenue by selling advertising space to other businesses. For instance, YouTube offers pre-roll, mid-roll and in-video ads for advertising companies. Predominantly, Pay TV is one of the largest markets for advertisers. In addition, advertising is also seen as a considerable revenue source during live streaming of sports events and tournaments.

Deployment Type Insights

The cloud deployment segment exhibited the largest revenue share in 2023 and will observe an uptick on the back of increased scalability. Robust projection is partly attributed to the demand for personalized content and the adoption of a pay-as-you-go business model. Predominantly, cloud-based solutions offer agility, capacity, and flexibility to handle fluctuations in traffic. The advanced solution has also helped video service providers to monetize offerings through targeted advertising.

The on-premise deployment has gained prominence to avoid bandwidth constraints and foster smooth network accessibility for seamless video streaming. Besides, sensitive content is profoundly retained on-premise for security and control. The growth is also attributed to the innate ability of the model to ensure virtually 100% uptime by negating service outages and interruptions. In essence, on-premise for OTT platforms could be resource-intensive with high upfront costs.

User Insights

The consumer segment accounted for the largest revenue share in 2023 and is poised to observe an uptick on the back of trends for gaming, e-learning, real-time entertainment, and social networking. In essence, live video and non-linear streaming providing e-learning and gaming have witnessed a massive uptick among consumers. Consumers will continue to bank on video streaming of theater performances, live concerts, vising museums and sporting events.

U.S. Video Streaming Market Key Companies

• Amazon Web Services, Inc.
• Apple Inc.
• Cisco Systems, Inc.
• Google LLC
• Kaltura, Inc.
• Netflix, Inc.
• International Business Machine Corporation (IBM Cloud Video)
• Wowza Media Systems, LLC
• Hulu, LLC (Walt Disney)

U.S. Video Streaming Market Segmentations:

By Streaming Type

• Live Video Streaming
• Non-Linear Video Streaming (Video on Demand)

By Solution

• Internet Protocol TV
• Over-the-Top (OTT)
• Pay TV

By Platform

• Gaming Consoles
• Laptops & Desktops
• Smartphones & Tablets
• Smart TV

By Service

• Consulting
• Managed Services
• Training & Support

By Revenue Model

• Advertising
• Rental
• Subscription

By Deployment Type

• Cloud
• On-Premises

By User

• Enterprise
  • Corporate Communications
  • Knowledge Sharing & Collaborations
  • Marketing & Client Engagement
  • Training & Development
• Consumer
  • Real-Time Entertainment
  • Web Browsing & Advertising
  • Gaming
  • Social Networking
  • E-Learning