Regulatory maturity and market performance in the global OTT video landscape: A two-stage composite indicator analysis

This study investigates the structural alignment between regulatory frameworks and the performance of Over-the-Top (OTT) video ecosystems across 31 countries. Utilizing a cross-sectional dataset evaluating the cumulative regulatory landscape and market performance as of 2024, the research employs a two-stage Composite Indicator Analysis to evaluate Regulatory Maturity as a structural foundation for Market Performance (measured by ARPU and user penetration). Crucially, even when controlling for macroeconomic wealth (GDP per capita), the findings confirm that market performance remains independently associated with modernized regulatory frameworks. These frameworks are distinctively characterized by updated digital legislation, equitable taxation of international streaming platforms, enforceable net neutrality, and convergent regulatory authorities. Through a data-driven typology of four strategic country clusters, the analysis demonstrates that the 'Balanced Leaders' paradigm dominates the global benchmark, confirming that institutional readiness is a prerequisite for sustainable monetization. However, a critical structural divergence emerges: a “Monetization Lag” in specific jurisdictions where mature legal frameworks have not yet yielded proportional economic outcomes. The study concludes that while comprehensive regulatory maturity is a fundamental requirement for long-term ecosystem stability, the mere isomorphism of global legal standards does not guarantee sustained economic realization without the corresponding structural market readiness. • A Two-Stage Composite Indicator benchmarks OTT regulatory maturity and market performance across 31 countries. • Regulatory maturity acts as a structural catalyst for OTT monetization, rather than an innovation constraint. • A 'Monetization Lag' cluster reveals that legal isomorphism without market readiness fails to drive growth. • Updated frameworks, converged authorities, net neutrality, and taxing international OTTs drive sustainable monetization. • Europe sets the global benchmark despite a two-speed divide, while emerging markets face institutional voids.