The streaming and OTT (Over-The-Top) platforms industry is undergoing an accelerated transformation driven by changing consumer habits, technological innovation, and the growing demand for on-demand content. As more users opt for streaming services over traditional television, companies in the sector are adapting to meet this growing demand.
By 2025, several key trends are anticipated that will not only reshape the digital entertainment landscape but will also influence how audiences interact with content. These trends will range from advanced personalization and the use of artificial intelligence to the global expansion of platforms and the creation of exclusive original content, redefining the way we consume audiovisual media in the near future.
What are the main trends expected for 2025?
The OTT (over-the-top) market is projected to reach $1.99 trillion by 2029, growing at an annual rate of 28.19%. Personalized content, live streaming of sports events, and cross-platform competition will drive the market’s evolution. However, content piracy remains a significant challenge.
Let’s look at the trends that will mark the market over the next few months one by one:
1. Growing fragmentation and competition
The expansion of new OTT platforms, each offering exclusive content, is expected to continue, leading to further market fragmentation. We are likely to see mergers and acquisitions between platforms to consolidate content and reduce costs, as has already happened with some large media companies.
2. Rise of FAST channels:
Experts predict that FAST advertising revenue in the US will reach $6 billion by 2025, surpassing that of cable TV, broadcast radio, and even subscription-based streaming platforms (SVOD/AVOD). This represents a new revenue stream for OTT platforms, requiring innovative advertising formats that do not interrupt the viewing experience.
3. Advanced customization
By 2025, personalization will go beyond simple content recommendations. OTT platforms will use AI and machine learning algorithms to create detailed user profiles, considering viewing habits, preferences, and even mood analysis in real-time. This level of personalization will ensure that users receive content suggestions tailored specifically to their tastes, increasing engagement and satisfaction.
4. Augmented reality or interactive content
Viewers today are not content with just watching content; they want to be part of the action. The integration of Augmented Reality (AR) and Virtual Reality (VR) into OTT platforms will expand, enabling immersive experiences. For example, we are talking about integrating video game features into streaming platforms, where users can make decisions that affect the development of the plot or interact with the content in creative ways, such as real-time voting, challenges, or rewards.
This type of content will be key to attracting and retaining users. By offering more immersive experiences, viewers feel like they have control or a more personal connection to what they are watching, which generates greater emotional engagement and motivates them to continue using the platform.
5. Rise of local content and microcontent
OTT platforms will focus more on producing local and regional content to appeal to niche audiences, especially in emerging markets. Content that reflects cultural diversity will become more common as platforms look to broaden their global appeal and connect with diverse audiences. In addition, short-form content such as short videos and “light” shows will become more prominent in addressing the reality of increasingly shorter attention spans.
6. Multichannel and omnichannel experience
Users will continue to demand the ability to consume content on a variety of devices (smartphones, tablets, smart TVs, consoles, etc.). OTT platforms will be forced to optimize the experience on each of these channels, maintaining a fluid continuity in the user experience.
7. Live streaming and sporting events
Live streaming, especially of sporting events, will become a key area of growth. In addition to sports, other live experiences, such as concerts, product launches, or interactive events, will gain popularity, attracting massive audiences and creating new monetization opportunities.
8. Regulation and privacy
With the increasing influence of OTT platforms, more government regulation is expected, especially regarding data privacy, copyright, and local content protection.
9. Monetization of new forms of content
With the rise of non-fungible tokens (NFTs), platforms could begin to explore selling exclusive or collectible content in digital format, offering users new ways to own and experience content.
In addition to traditional subscriptions, new forms of monetization could emerge, such as premium live experiences, early access to content, or even microtransactions within interactive content, meaning users will be able to purchase products that appear in the content directly from the app.
These trends reflect a dynamic and evolving market where technology, consumer behavior, and business strategies intertwine to define the future of OTT platforms and the streaming industry in 2025.