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2025 OTT Trends: The Top 5 Shaping the Streaming Industry

Top 5 OTT Market

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Explore the top 5 trends shaping the OTT market in 2025, as streaming platforms continue to evolve. From personalized content recommendations to the rise of interactive viewing experiences, discover how technological advancements, content diversification, and user engagement are transforming the streaming industry.

Top 5 Trends Shaping the OTT Market in 2025

The entertainment industry is now dominated by over-the-top (OTT) streaming platforms. In 2025, the OTT sector is anticipated to undergo even more revolutionary changes due to the proliferation of content, rising global subscriptions, and constantly changing technology. In 2024, the global penetration rate of OTT video is 68.07%. OTT is unique because of the massive feature deployments that took place in 2024, including personalisation, analytics, AI integrations, and much more.

The global over the top (OTT) market attained a value of USD 124.72 billion in 2024. The market is further expected to grow in the forecast period of 2025-2034 at a CAGR of 15% to reach USD 439.49 billion by 2034. In 2023, North America held a dominant 46% share of the OTT content market. Over 5.27 billion OTT users are anticipated globally in 2024, and by 2029, that figure is predicted to rise to 6.33 billion.

1. The Rise of Ad-Supported Streaming Models

Ad-supported video-on-demand (AVOD) models are expected to overtake other income methods as competition ramps up and customer subscription fatigue sets in. Ad-supported tiers are already being introduced by platforms like Peacock, HBO Max, and Disney+, and more are anticipated to follow.

By 2025, ad-supported OTT content will likely expand in both reach and quality. In order to improve user experience and increase platform revenue, advertisers will use the data from these platforms to provide more individualised and targeted advertising.

Amazon recently revealed that it will introduce this new ad functionality gradually and that Prime Video will start displaying restricted advertisements in early 2024. Ad-supported tiers or plans that provide more content or cheaper rates in exchange for watching advertisements have not yet been introduced by many other players. The goal of Prime Video's advertisements is to increase revenue from both its current user base and suppliers while drawing in new clients with less expensive streaming options.

"JioCinema Premium," a new ad-free premium package offered by JioCinema, costs ₹29 per month. This subscription contains ad-free material in multiple languages, including TV entertainment, children's programming, films, and original series. A family plan that allows up to four devices to stream simultaneously was also offered, and it costs ₹89 per month.

2. AI and Personalisation in Content Delivery

Artificial intelligence (AI) will play an increasingly pivotal role in content delivery, especially in personalisation. OTT platforms will use advanced algorithms to curate content recommendations, making them more precise and tailored to individual tastes. As AI improves, platforms will not only recommend shows based on a user’s viewing history but will also consider factors like mood, location, and even time of day.

Platforms like Netflix, Amazon Prime Video, and YouTube are already leveraging AI to personalise viewing experiences. This trend will only intensify, with smarter algorithms and deeper integrations of machine learning. Netflix’s AI-driven recommendation engine is credited with generating 80% of all watched content on the platform. It saves the company over $1 billion annually by reducing churn and improving viewer retention.

Amazon’s AI system analyses data from over 200 million global subscribers. It combines viewing habits and purchase history to suggest content, contributing significantly to its status as the second-largest OTT platform.

Disney+'s AI-powered suggestions helped the service achieve 164 million members in just three years. To keep users interested, its technology leverages franchise-specific data, such as their interest in Marvel or Star Wars.

3. Regional and Local Content Emergence

Despite the dominance of global OTT giants like Netflix and Amazon, regional content is expected to capture a bigger share of the market by 2025. Platforms will have to provide more locally relevant content in order to appeal to a wide range of users. 

Local content is becoming more and more popular, particularly in emerging areas where consumers like content that captures their cultural variations, as PwC notes in its 2023 study. For instance, in order to draw users, platforms such as Disney+ Hotstar, Sony LIV, and Zee5 have started giving priority to localised programming in India. By 2025, regional shows will make up a greater portion of OTT platforms' libraries, and their investments in local content will have increased dramatically.

This tendency is further demonstrated by the rise of regional OTT platforms that cater to local audiences, such as Iflix in the Middle East and Viu in Asia. The difficulty for international over-the-top (OTT) companies will be to compete with these regionally focused platforms by producing content tailored to each region while maintaining the attraction of their brands on a global scale.

4. The Growth of Virtual Reality (VR) and Augmented Reality (AR)

It is anticipated that OTT platforms would have advanced significantly in incorporating augmented reality (AR) and virtual reality (VR) into their services by 2025. VR has the potential to be a crucial medium for over-the-top (OTT) services, and immersive entertainment experiences are already beginning to take shape. 

According to TechCrunch, 360-degree movies are already being experimented with by OTT companies like Netflix and YouTube, and by 2025, consumers can anticipate more immersive content from these providers. Users may be able to participate in completely interactive experiences with VR and AR, seeing movies or television series in virtual settings. These developments could go beyond conventional viewing to encompass interactive experiences, live events, and concerts, increasing audience participation and engagement.

A recent survey found that 63% of sports fans would be willing to pay for an over-the-top (OTT) subscription in order to pursue their interests. To reach a wider range of viewers, major athletic events like the NBA, NFL, and others are reimagining their live broadcasting with AR VR development services. 

5. OTT for Niche Audiences

Niche OTT platforms that cater to specific interest groups are expected to rise in prominence in 2025. These platforms offer highly specialised content, whether it’s focused on true crime, sports, wellness, or a specific genre of movies or series.

Platforms like Shudder (for horror fans), CuriosityStream (for documentaries), and Acorn TV (for British dramas) have already carved out a place in the market by offering content that appeals to specific groups. By 2025, more niche platforms will emerge, allowing brands to cater to underserved audiences who crave hyper-targeted content.

Conclusion

In conclusion, trends including ad-supported models, AI-driven personalisation, regional content development, and immersive technologies like VR and AR are expected to significantly disrupt the OTT market in 2025. The OTT industry will grow more competitive and diverse as platforms invest in local programming and target specialised demographics. OTT platforms are poised to revolutionise the way that consumers around the world consume entertainment by integrating cutting-edge technologies and emphasising customised content. In addition to improving user experiences, these adjustments will stimulate industry expansion and innovation.

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30 North Gould Street, Sheridan, WY 82801

+1-415-325-5166

63 Fiona Drive, Tamworth, NSW

+61-448-061-727

C130 Sector 2 Noida, Uttar Pradesh 201301

+91-858-608-1494

40th Floor, PBCom Tower, 6795 Ayala Avenue Cor V.A Rufino St. Makati City, 1226.

+63-287-899-028, +63-967-048-3306

6 Gardner Place, Becketts Close, Feltham TW14 0BX, Greater London

+44-753-713-2163

193/26/4 St.no.6, Ward Binh Hung Hoa, Binh Tan District, Ho Chi Minh City

+84-865-399-124