Here’s a reason Apple wants/needs a video streaming service the market will be worth $70.05 billion by 2021

Here’s a reason why Apple is almost certainly working on its own video streaming service: The video streaming market is estimated to grow from $30.29 billion in 2016 to $70.05 billion by 2021, according to Research and Markets.

The market is expected to grow at an “impressive” compound annual growth rate of 18.3% because of the rising usage of online streaming, notes the research group. Users have started adopting pay TV and OTT (over-the-top) solutions for streaming videos. In broadcasting, refers to delivery of audio, video, and other media over the Internet without the involvement of a multiple-system operator in the control or distribution of the content. Examples are Netflix, Hulu, and Amazon Prime.

The online streaming has provided many advantages to users such as ability to skip advertisements, access to episodes anytime, and ability to watch events and shows with flexibility in time. The online video streaming has also increased the viewership up to 60%, which includes young individuals, according to Research and Markets.

In solutions, OTT is expected to have the largest market growth rate and dominate the video streaming market from 2016 to 2021, due to the increasing use of digital platforms for branding and marketing of products, adds the research group. Smartphones and tablets are the widely used platform for streaming live and on-demand videos. 

Research and Markets anticipates that 2016 could be the tipping point in widespread enterprise adoption of mobile devices. It’s the fastest-growing platform type among other video streaming platforms as it plays vital role in providing assistance in watching videos on real time basis.

Apple is almost certainly considering its own video streaming service (which I’ve dubbed Apple Web TV). At one point it was expected to debut in late 2015, then in early 2016. Bloomberg says the original plan to sell 14 or so channels for US$30-$40/month, but has "run into resistance from media companies that want more money for their programming." 

Media execs have said they expect Apple and other new entrants pay more per channel than pay-TV incumbents. The Wall Street Journal and Re/code have also reported of Apple video streaming plans, while Variety has reported of talks with Hollywood studios to finance original content.