Disney+, HBO Max will help push U.S. SVOD spending to $22B in 2020

HBO Max
While CTA expects smart TVs to outsell other types of television sets in 2020, it also expects 4K compatible TVs to have a big year. (HBO)

New streaming services like Disney+, HBO Max, Apple TV+ and Peacock – along with stalwarts like Netflix and Hulu – will cause a big jump in U.S. SVOD spending next year.

According to a Consumer Technology Association analysis, U.S. consumers will spend $21.9 billion on subscription streaming video services in 2020, representing a 24% increase over the $17.7 billion spent in 2019. With increased spending on services providing streaming content will also come increased spending on devices on which to watch the content.

CTA predicts there will be 20.7 million streaming media players sold in the U.S. in 2020, up 11% from 18.6 million in 2018. But despite efforts from pay TV equipment makers like TiVo and service providers like Comcast to create consolidated experiences for different streaming apps, that uptick in sales won’t likely include their devices. The study predicts sales of cable and satellite set-top-boxes and disc players will respectively decline by 9% and 13% from 2018 to 2020.

Sponsored by Google Cloud

Webinar: Remote Post Production In The Cloud

Video production companies across the world have traditionally been tethered to physical facilities, but with the advent of covid-19, remote post production capabilities are more important than ever. Join this webinar to learn more about how video producers can utilize Google Cloud infrastructure, along with partner applications, to develop a remote post production suite that brings your artists and editors together, no matter where they are.

RELATED: Amazon and Netflix command nearly two-thirds of all SVOD spending: study

However, sales of smart TVs will continue to rise in the U.S. CTA said it expects 29 million smart TVs will be sold in the U.S. in 2020, which will create $16 billion in revenue. It’s likely that Roku and Amazon stand to benefit a lot from this increase, considering their many smart TV operating system deals with manufacturers.

While CTA expects smart TVs to outsell other types of television sets in 2020, it also expects 4K compatible TVs to have a big year. The association said that 4K TVs will account for 50% of new TVs sold in the U.S. in 2020.

Suggested Articles

Early reactions to Instagram's Reels, Facebook's answer to TikTok: no creativity seen, quite possibly no creativity needed.

Quibi subs complain about the quality of the shows, the ease of use of the platform and issues with buffering and speed, according to Kantar.

Roku found itself with more viewers than ever in its second quarter but still no profits.