Global video revenues hit $70bn in 2017, and are set for even higher growth, says Strategy Analytics
Online services such as Netflix and Amazon Prime Video have transformed the video business in recent years, but according to the latest research from Strategy Analytics, revenue increases will be even higher in the next four years than in the previous four years.
The report, Home Video and OTT Video Forecast – Global, concludes that global video revenues, including online, physical media and advertising, reached $70.2bn (€56.52 billion) in 2017, an increase of $29.4bn (€23.67 billion) since 2013. Over the next four years the increase in dollars, $36.3bn (€29.23 billion), will be even greater, taking total industry revenues to $106.5bn (€85.75 billion) in 2021.
Other key findings from the research include:
- In 2017 online revenues, including consumer spending and advertising, accounted for 84% of the total video market, compared to 52% in 2013
- Subscription VOD revenues rose by more than a third in 2017 and are forecast to reach nearly $50bn (€40.26 billion) by 2021
- Advertising alone now accounts for 38% of total video revenues
- The U.S. (47%) accounts for the largest share of global online video revenue in 2017, followed by China (10%) and Japan (6%)
- Physical media such as DVDs and Blu-ray Discs accounted for 16% of revenue in 2017, down from 76% in 2010
- Average annual video revenues per household vary greatly, from $270 (€270) in North America to less than $5 (€4.03) in Middle East and Africa (see chart)
Michael Goodman, director, TV & Media Strategies at Strategy Analytics notes: “The online video market is being driven by subscription-based business models and advertising, alongside a relative decline in download-to-own and rental models. Netflix and Amazon are the headline acts but many other streaming video services around the world are also gaining traction as the video market continues to expand.”
Strategy Analytics analysts will be attending this year’s NAB Show in Las Vegas, NV, April 9-12, and will be available to discuss these findings as well as other issues related to the transformation of television.