U.S. Video Streaming Market Expands Amid Rising Demand for On-Demand Content

The U.S. video streaming market size was estimated at USD 18.79 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 19.8% between 2024 and 2030. Prevailing trends, such as rising internet penetration, evolving consumer preferences and increasing footfall of 5G services, have brought a paradigm shift in the regional landscape. Low latency and tremendous speed have made 5G a valuable proposition for faster downloads, enhanced performance, and smoother playback. Homes using online video services, including Netflix, Hulu, Disney+, and Amazon Prime, could overtake traditional multichannel in the ensuing period. Better streaming and high-profile theatrical content and digital sports make video streaming services a happy hunting ground.

Shifting user behavior towards 4K, 8K, full HD, and HD has engineered robust market growth in the U.S. The global average data consumption per smartphone from video streaming is likely to be pegged at 16.3 GB (by the end of 2024). The ubiquitous presence of streaming services in American homes has encouraged leading players to inject funds into the landscape. For instance, Netflix reported (as of December 31, 2023) around 260.28 million global paid memberships, with the U.S. and Canada accounting for 80.13 million subscribers.

While the COVID-19 pandemic wracked havoc globally, video streaming giants cashed in on the unprecedented demand for home entertainment. With theaters being shut down and consumers spending more leisure time at home, at-home video consumption grew by leaps and bounds. The outbreak also led to the launch of new content and services, as staying put in homes led to soaring demand for OTT services. For instance, New York, Washington, Orlando, Norfolk, Milwaukee, Denver, Chicago, Illinois and California witnessed a phenomenal rise in streaming consumption.

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Key U.S. Video Streaming Company Insights

Some of the key players operating in the market include Apple Inc., Google LLC, IBM and Netflix, Inc. Some dynamics reshaping the U.S. market are delineated below:

• In January 2023, IBM announced the rollout of a live mobile video streaming app to foster workplace communication globally. It is reported that the features added to the app are in line with businesses, such as closed captioning (AI-powered).

• In March 2023, Apple reportedly acquired WaveOne, a startup that uses AI to compress videos. The AI-powered scene and object detection is expected to help understand a video frame and save bandwidth.

• In February 2024, Netflix was reported to be contemplating a foray into video games with the launch of the streaming service. The twin innovations of subscription and streaming can redefine the gaming landscape.

• Some emerging companies, such as Hulu and Stacked, have augmented their strategies to gain a competitive edge in the industry.

• In November 2023, The Walt Disney Company announced it would acquire Hulu in a USD 8.6 billion deal. It is likely to help the former underpin its streaming business.

• In August 2022, Stacked was reported to be making a video streaming platform for gaming content—Twitch for web3 users. The startup is reconfiguring its video streaming service with NFT and crypto features.

Key U.S. Video Streaming 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)

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