Forecast: Global Streaming Revs To Rise 10% Per Year Through 2025, Expected To Hit $81 Billion

Worldwide streaming video on demand revenues -- of all types -- are projected to rise 10.6% , on a compounded annual growth rate, over the next four years to $81 billion by 2025, according to PwC (PricewaterhouseCoopers).

In 2020, streaming revenues -- in the midst of a deep pandemic and high demand period -- witnessed its biggest bump in terms of revenues -- adding $11 billion to total $48 billion. This year, PwC estimates streaming revenues will rise by around $6.7 billion to total $55 billion.

But there might be slower growth after 2025:

“There is likely a limit to the number of streaming subscriptions a household is willing to buy -- and people can cancel their OTT services with relative ease,” writes the PwC authors.

“We may be moving into a new phase of streaming growth -- one that is more measured, more focused on improving the experience of customers, and more intent on retaining and creating value from the immense subscriber bases that have materialized. At the heart of it lies an arms race for content.”

The report projects global advertising will climb 6.5% through 2025 to $798 billion (from $583 billion in 2020) -- with worldwide TV advertising seeing a slight 4% hike over that period. Internet advertising will be continue to over acheive, gaining 7.7% on a compounded basis (from its current $336 billion level in 2020) to around $480 million.

It also says video game revenue, which rose by almost 10% in 2020, is expected to rise at a 4.4% on a compounded basis through 2025 to around $180 billion. This data includes console games, PC games and social/casual gaming.

The biggest percentage growth of any entertainment/media business will be with virtual reality, which was up 32% to $1.8 billion in 2020. That fast growth hike will continue -- a 30.3% compounded annual rate through 2025 -- to $6.9 billion.

Other big growth media revenue businesses include cinema (off of its crushing low pandemic levels) spiking at a 29% CAGR (compounded annual growth rate); data consumption, 27%; out of home advertising, 11%; OTT video, 10%; music/radio/podcasts, 9%; and internet advertising, 8%.

Losing ground are newspapers/magazines, down 1% and traditional TV/home video, down 1%.

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