According to a report by Gartner Inc, global spending on consumer video media services will total $314 billion in 2017 which is an increase of 4.2% from 2016.
The results of the study said that Pay-TV services will be constituting 90% of the total market, totaling $282 million in 2017, and making them the largest spending segment.
Asia/Pacific, Middle East, and North Africa are expected to record the highest growth in end-user spending on consumer video media services.
According to Gartner, internet- delivered linear TV services, will be introduced in all emerging regions by 2018.
The transactional video on demand (TVOD) is offering consumers access a wide variety of content, from either managed pay-TV providers or over-the-top (OTT).
“OTT-VOD sources are changing the landscape,”said Derek O’Donnell, Senior Research Analyst at Gartner. “OTT-VOD services are the fastest-growing segment in the VOD landscape and eroding pay-TV providers’ share of revenue. OTT-VOD sources began outperforming traditional pay-TV sources in 2016,” added Donnell.
The report highlighted that the global consumer spending on subscription-based video on demand (SVOD) services will total $18.7 billion in 2017 witnessing an increase of 28% from 2016.
The access to premium priced 4K content will give rise to an increase in end-user spending on TVOD content in mature regions which is anticipated to go up from $160 million in 2017 to $400 million by 2020.
Additional information is provided in the Gartner report “Forecast Analysis: Consumer Video Media Services, Worldwide, 1Q17 Update.”
End-User Spending on Consumer Video Media Services, by Service Category, Worldwide, 2016-2020 (Billions of U.S. Dollars)
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