The U.S. video streaming market, valued at $18.79 billion in 2023, is projected to grow to $66.41 billion by 2030, with a Compound Annual Growth Rate (CAGR) of 19.8% from 2024 to 2030. This growth is being driven by factors such as increasing internet usage, evolving consumer preferences, and the expansion of 5G networks. The low latency and high speeds of 5G are particularly beneficial for faster downloads and smoother playback, making it a key driver for the market. Services like Netflix, Hulu, Disney+, and Amazon Prime are gaining traction, fueled by a strong demand for high-quality content, including theatrical releases and live sports.
Changing user behavior, with a preference for 4K, 8K, and high-definition content, is a significant catalyst for market growth. The average global data consumption per smartphone from video streaming is anticipated to be 16.3 GB by the end of 2024. The widespread adoption of streaming services in American households is prompting major companies to invest heavily in the sector. For example, as of December 31, 2023, Netflix reported 260.28 million global paid memberships, with the U.S. and Canada making up 80.13 million of those subscribers.
Key Market Insights:
- By Streaming Type: The live video streaming segment was the market leader in 2023, accounting for a 64.2% revenue share.
- By Solution: The Over-the-top (OTT) segment generated the largest revenue share in 2023, driven by the significant growth of major platforms such as Netflix, Disney+, and Amazon Prime Video.
- By Platform: Smartphones and tablets held the largest market revenue share in 2023, largely due to the increasing adoption of advanced devices across the region.
- By Service: Training and support services contributed a significant share of the market revenue in 2023 and are expected to continue growing due to the rising demand for employee training and development.
- By User: The consumer segment held the largest revenue share in 2023 and is poised for continued growth, fueled by trends in gaming, e-learning, real-time entertainment, and social networking.
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Market Size & Forecast
- 2023 Market Size: USD 18.79 Billion
- 2030 Projected Market Size: USD 66.41 Billion
- CAGR (2024-2030): 19.8%
Key Companies & Market Share Insights
Major players in the market include Apple Inc., Google LLC, IBM, and Netflix, Inc. Here are some of the recent activities and strategies that are shaping the U.S. video streaming market:
- In January 2023, IBM released a live mobile video streaming app to improve workplace communication globally. The app includes business-friendly features, such as AI-powered closed captioning.
- In March 2023, Apple acquired WaveOne, a startup specializing in using AI to compress videos. This technology uses AI-powered scene and object detection to understand a video frame, which can help save bandwidth and improve streaming efficiency.
- Netflix has reportedly been exploring a move into the video game streaming space. This initiative, which combines a subscription model with streaming technology, could redefine the gaming landscape.
In addition to these established companies, some emerging firms are also working to gain a competitive edge:
- In November 2023, The Walt Disney Company announced it would acquire full ownership of Hulu for $8.6 billion, a deal that was finalized in 2025. This acquisition strengthens Disney’s streaming business by fully integrating Hulu’s content with its other platforms like Disney+ and ESPN’s streaming service.
- In August 2022, Stacked was reported to be developing a video streaming platform for gaming content, positioning itself as a "Twitch for web3 users." The startup is reconfiguring its video streaming service to include NFT and crypto features.
Key Players
- 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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Conclusion
The U.S. video streaming market is undergoing rapid transformation, driven by technological advancements, evolving viewer preferences, and increasing investments by leading players. With the growing demand for high-definition content and real-time experiences, services are becoming more innovative and diverse. The rise of mobile devices and 5G connectivity is further enhancing accessibility and user experience. Strategic acquisitions and AI integration are also shaping the competitive landscape. As streaming becomes a staple in American households, the market is expected to continue its strong upward trajectory.
