Some key performance indicators and benchmarks for the OTT and streaming TV industry.

Global OTT Market Growth Rate

The global OTT market is growing at a compound annual growth rate (CAGR) of 14% to 18%. This rapid growth is driven by increasing internet penetration, the rising popularity of smart devices, and a growing demand for on-demand video content. (Source: Allied Market Research, 2023)
Allied Market Research

Average Subscription Rate

The average monthly subscription rate for OTT services is approximately $10.99 per month per subscriber. This rate reflects the competitive pricing strategies of various OTT platforms aiming to attract and retain subscribers. (Source: Deloitte’s Digital Media Trends Survey, 2023)
Deloitte

Streaming TV Advertising Rates

OTT advertising CPM rates range from $15 to $50 per thousand impressions, depending on targeting and viewer demographics. Higher CPM rates are often associated with more precise targeting and premium audience segments. (Source: Magna Global, 2023)
Magna Global

Customer Acquisition Cost (CAC)

The average customer acquisition cost (CAC) for acquiring a new OTT subscriber is estimated at $100 to $150 per customer. These costs include marketing and promotional expenses aimed at attracting new users to the platform. (Source: Statista, 2023)
Statista

Churn Rate

The average annual churn rate for OTT platforms is around 35% to 40%. High churn rates highlight the challenges OTT platforms face in retaining subscribers amid growing competition and changing consumer preferences. (Source: Parks Associates, 2023)
Parks Associates

Average Revenue Per User (ARPU)

The average revenue per user (ARPU) for OTT services is approximately $8 to $12 per month globally. ARPU is a critical metric that helps OTT platforms measure the financial value generated from each subscriber. (Source: Omdia, 2023)
Omdia

Trial to Paid Subscriber Conversion Rate

The average conversion rate from free trial to paid subscription for OTT services is about 20% to 30%. This conversion rate indicates the effectiveness of trial periods in converting users to paying subscribers. (Source: nScreenMedia, 2023)
nScreenMedia

OTT Licensing Content Costs

OTT platforms spend an average of 30% to 50% of their revenue on content acquisition and production annually. Significant investment in content is essential for attracting and retaining subscribers in a competitive market. (Source: Digital TV Research, 2023)
Digital TV Research

OTT Viewing Time

OTT viewers spend an average of 3 to 4 hours per day watching content on OTT platforms. High engagement levels demonstrate the growing importance of OTT services in consumers’ daily entertainment routines. (Source: Conviva, 2023)
Conviva

OTT Profit Margins

Profit margins for OTT platforms typically range from 15% to 25%, depending on scale and market maturity. Profitability is influenced by factors such as subscriber growth, content costs, and operational efficiencies. (Source: Media Partners Asia (MPA), 2023)
MPA