Global OTT revenue to top $50B in 2017, Strategy Analytics says

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Next year could be shaping up to be a big one for SVOD and OTT providers, as research firm Strategy Analytics predicted that global OTT and SVOD revenues will reach $50.3 billion.

In his new report titled “Top Ten Digital Media Predictions for 2017,” Michael Goodman, director of Digital Media Strategies at Strategy Analytics, highlighted trends and events that will shape OTT video, digital advertising and VR in 2017.

“As a result of the proliferation of broadband and connected devices consumers have more choices than ever in how, when, and where they connect with music, games and video,” wrote Goodman in a statement. “As consumer adoption of online alternatives grows the degree of disruption felt by traditional distribution models is accelerating.”


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RELATED: Amazon Prime Video confirms international expansion plans

In all likelihood, a big driver of revenue for the global OTT/SVOD market next year will be Netflix’s and Amazon’s burgeoning international turf war. After Netflix earlier this year announced its plans to offer its service in another 130 countries, Amazon recently confirmed its own plans to offer its Prime Video service in more than 200 countries and territories. Although, Amazon Prime in those international markets will cost significantly less than in countries where Prime perks like free shipping are bundled in with the deal.

In addition to a strong year for global OTT/SVOD revenues, Goodman predicted digital video will pull in a bigger chunk of ad spend. According to his forecast, global digital video ad spend will move past $20 billion in 2017 and take up 18% of global digital ad spend.

While Goodman predicts that OTT video will “garner the hype,” he said that traditional television revenues (subscription + advertising) next year will hog 88% of the $192.7B television and OTT video market in the U.S.

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