SVOD (subscription-video-on-demand) services, provided by the likes of Netflix and Amazon, will drive a surge in OTT revenues to reach $120 billion in 2022, up from $64 billion in 2017.
This is according to new data from Juniper Research, Digital TV & Video: Network and OTT Strategies 2017-2022, which also predicted that more than 25% of global households will be subscribing to SVOD services by 2022.
Furthermore, the research predicts that global video-on-demand service Netflix and publicly funded BBC will spend over $6 billion and $1.4 billion respectively during 2017-18.
Juniper research author Lauren Foye adds that SVOD players including Netflix are seeking to out-spend traditional providers, attempting to deliver original content and reduce reliance on expensive back-catalogues. "Success will hinge on whether these providers can continue to produce hits such as 'Stranger Things'. As consumers become more fluid in their uptake and loyalty to video services, OTTs could just as easily see users switch off."
Locally, Africa has also seen a steady increase in the number of SVOD services. Figures from statistics portal, Statista, indicate that revenue in the SVOD segment amounted to $205m in 2017 while revenue is expected to show an annual growth rate of 12.4 % between 2017 and 2022 resulting in a market volume of $368 million in 2022.
User penetration in the region is estimated at 3.8 % in 2017 and is expected to hit 5.8 % in 2022.
Most recently telco Cell C launched a new platform, Black. At the time the company explained that the platform is primarily a VOD and live-streaming portal but also enables services like gaming, sports betting, travel and hotel bookings.
Another local telco Telkom has launched LIT TV. This offers unlimited ADSL, fibre and the the Telkom LIT TVC 100 media box to LTE Smart Broadband customers, which allows them to transform their TV into a smart TV with pre-loaded content channels from select content providers. The company partnered with Showmax, Netflix, YouTube and Google Play to bring content on demand to viewers.
According to a 2016 Nielsen report, nearly two-thirds of global respondents (65%) in a Nielsen online survey in 61 countries say they watch some form of video-on-demand programming, which includes long- and short-form content.
Share