The U.S. streaming video market is on the cusp of big expansion – with players like Apple, Disney and WarnerMedia joining the fray – and it’s going to fuel explosive growth for the global market.
PwC released its latest Global Entertainment and Media Outlook report, which highlights how those new OTT video entrants will challenge the dominance of services like Netflix and Amazon, who will in turn shift their attention to international markets to maintain subscriber growth.
These factors and more will contribute to the global OTT video market doubling in size between 2019 and 2023 to $72.8 billion.
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PwC said the global market will hit a tipping point in 2021, when Asia Pacific will overtake North America as the world’s biggest region in terms of OTT video revenue.
Over the same forecast period, the firm is predicting that the U.S. pay TV industry will continue to see declines. Pay TV revenues will be hit by -2.9% compound annual growth rate and decline to $81.8 billion in 2023.
In the run up to 2023, the U.S. will maintain its dominance in the global television advertising market, though it will lose some market share. PwC said the U.S.’s share of the global market will shrink from 43% in 2018 to 41% in 2023, with emerging markets taking an increasingly larger share. While that’s happening, PwC sees digital advertising continue to grow.
“The shift towards Internet advertising continued in 2018, as marketers pursued consumers on the platforms they use the most. We are approaching a tipping point,” PwC Global wrote, adding that marketers will allocate more than 50% of their budgets to digital advertising by 2023.