Another article from last year, but this one has some relevance. The USA Today
article I commented on yesterday told us that total revenues for OTT Pay TV in
the U.S. $16.4 billion in 2017.
This compares with revenues from legacy MVPD subscription services of $115.5
billion in 2015, which this article suggests will rise to $116.8 billion by
2020. It does not include the revenues being generated by TV advertising of
$72.5 billion in 2017 as projected by Statista.
This brings the total spend on TV content in the U.S. around $200 billion a
year.
This article notes that OTT revenue growth is rising faster than MVPD revenues.
THe real questions in my mind, are how much of this money is going to shift to
OTT services in the coming years, and how much is going to shift from ad
supported “Free TV” services, to ad-free services delivered OTT?
Comments?
Regards
Craig
https://www.mediapost.com/publications/article/297129/total-us-mvpd-revs-up-ott-rising-faster.html
Total U.S. MVPD Revs Up, OTT Rising Faster
Wayne Friedman
Total revenues for U.S. cable, satellite, and telco providers is estimated to
inch up slowly in the next five years.
BMO Capital Markets says there will be 1% revenue growth for U.S. MVPDs
(multichannel video program distributors) to $116.8 billion in 2020, from
$115.5 billion in 2015. Globally, those businesses will see stronger growth --
with a 13% rise to $263.5 billion by 2020.
Looking at new digital pay TV businesses, the study shows that U.S.
over-the-top subscription video-on-demand services -- like Netflix -- will rise
to $17.4 billion by 2020, from $10.9 billion in 2017.
Newer OTT TV services -- those services packaging live, linear TV networks,
like DirecTV Now, Sling TV, and future efforts from YouTube TV and Hulu -- will
climb to $11.6 billion in 2020, from $4.2 billion.
While there are concerns over cord-cutting -- those dropping traditional pay TV
services -- the report says, “MVPD subscriptions still make up the vast
majority of spend on paid video content and will continue to do so for the
foreseeable future.”
U.S. MVPD video revenue is estimated to shrink in 2020 to 70.2% of total paid
video content spending, from 79.3% in 2015 in the U.S., and decline to 59.9% of
paid video content spending globally from 67.0%.
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