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European OTT Video Market to Reach $9.45 billion by 2018
Consumer spending to drive growth of OTT video revenues
Boston, MA - September 9, 2014 - European total OTT video revenue was up 51 percent in 2013 reaching $3.2 billion and is expected to grow a further 43 percent this year according to the latest research by Strategy Analytics’ Digital Media Strategies team. The 2014 European OTT Video Market Forecast predicts the majority of this growth will occur within the online subscription VOD (SVOD) and ad-supported video business models, lifting the market above US$9.45 billion by year-end 2018.
Click here for the forecast report
Key Findings:
- Led by Netflix, SVOD revenues experienced strong growth during 2013, up 133 percent and is expected to nearly double by year-end 2014.
- Ad-supported video makes up over 60 percent of total OTT video revenue in Central & Eastern Europe, but will represent less than 50 percent of Western Europe OTT video revenue by year-end 2014.
- Average OTT video spend per broadband user in Western Europe is about four times that of those in Central & Eastern European.
- From a user perspective, the European online video market is reaching maturity but from a consumption, and even more importantly, monetization perspective OTT video is just beginning to hit its stride.
The growth of OTT video suggests that the audience is shifting towards accessibility and availability over actual ownership of home videos. “Over time, consumers will shift from content ownership to lower cost means of consuming media. As long as OTT services providers continue to offer attractive video catalogues at a reasonable price, accessibility and availability will trump ownership,” notes Leika Kawasaki, Digital Media Analyst. “The success or failure of OTT video services is heavily dependent on the quality of their content library. The expansion of global players like Netflix across Europe has been slowed due to complex content negotiation impacting the quantity and quality of available content in the region.”
What is driving OTT Video growth?
Consumers across the region are consuming more OTT videos than ever before. “Broadband expansion, proliferation of connected devices, and easy access to extensive online video catalogues have proven a potent combination in driving adoption of OTT video,” adds Leika Kawasaki. The Strategy Analytics Report, European OTT Video Revenue to Reach $9.45 Billion by Year-End 2018 examines the current trends and factors impacting growth in ad-supported video, electronic sell-thru, digital rental, and subscription VOD markets.
Click here for the report
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