OTT Revenues Retain High Growth, But Slow Pace

Over-the-top revenue from digital platforms will see sharp growth in the near term, but will slow down to single-digit percentage gains in the coming years.

PwC (PriceWaterhouse Coopers) says OTT revenue grew 15.2% in 2017 to $20.1 billion in the U.S. It is expected to hit $22.6 billion this year -- for a 10% bump. Four years from now -- at an 8.8% annual compound growth rate -- it will total $30.1 billion by 2022.

Some 80% of these dollars will come from subscription video on demand, which this year will reach $18.2 billion -- up from $16 billion a year ago. Transaction SVOD will total $4.4 billion this year.

Globally, the U.S. will account for 55.6% of total OTT video market revenue in 2017, and 52.4% in 2022.

Netflix remains the largest SVOD provider -- with 109 million customers globally (in 2017), according to PwC. Currently, Netflix has around 55 million subscribers in the U.S.

PwC estimates that of the 70.7 million Amazon Prime customers, around half -- 31.8 million -- were active Amazon Prime Video customers. Hulu was at 16.3 million subscribers in 2017.



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