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Subscription VOD and Advertising Drive OTT Video Revenue Growth in the U.S.

by User Not Found | Mar 31, 2016

Strategy Analytics projects that OTT video revenue will surpass $30 billion by 2020, up from $19.45 billion in 2016, with steady double digital growth. This increase is mainly driven by SVOD and advertising.

As subscription streaming video options expand, consumers are becoming less likely to rent digital video. Digital video rental (TVOD), never all that popular with consumers, is expected to continue to decline to less than 5% of total OTT revenue.

OTT Video Revenue-U.S.

This year, Strategy Analytics expects consumers to spend $2.2 billion on Electronic Sell-Thru(EST), marking the first year EST will surpass digital video rental. The growth of SVOD won’t completely diminish the EST and TVOD as SVOD providers rarely offer new releases due to existing licensing and distribution agreements. In addition, some consumers still prefer to own their favorite movies, TV shows or concert.

Strategy Analytics will be publishing detailed forecasts on the global home video and OTT video market next month.

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