In recent years, online services such as Netflix and Amazon Prime Video have changed the video business, but Strategy AnalyTIcs ’latest research report, Global Home Video and OTT Video Forecast, points out that revenue growth in the next four years will be higher than in the previous four years. The report concludes that in 2017 global video revenue (including online, physical media and advertising) reached US $ 70.2 billion, an increase of US $ 29.4 billion since 2013. In the next four years, it will increase by US $ 36.3 billion, and the increase will be even greater, pushing the total size of the industry to reach US $ 106.5 billion in 2021.
Other key findings in the research report include:
· In 2017, online revenue, including consumer spending and advertising, accounted for 84% of the entire video market, compared with 52% in 2013
· Member subscription revenue for video-on-demand services increased by more than one-third in 2017, and is expected to reach nearly US $ 50 billion by 2021.
· Advertisements account for 38% of total video revenue
· The United States (47%) accounted for the largest share of global online video revenue in 2017, followed by China (10%) and Japan (6%).
· The proportion of physical media, such as DVD and Blu-ray Disc, decreased from 76% in 2010 to 16% in 2017.
· The average annual household video expenditure varies greatly, from $ 270 in North America to less than $ 5 in the Middle East and Africa (see chart)
Michael Goodman, Director of TV and Media Strategy at Strategy AnalyTIcs, pointed out: "The online video market is being driven by business models and advertisements based on member subscriptions, while download viewing and rental models are relatively declining. Netflix and Amazon are industry benchmarks, but with the video market Has continued to expand, and many other streaming video services around the world have become increasingly popular. "
Strategy AnalyTIcs analysts will participate in the NAB show in Las Vegas from April 9 to 12, and will discuss these findings and other issues related to TV transformation.
Note: This study includes all forms of online and physical video, except for pay TV services (such as NowTV and DirecTV Now).
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