According to Strategy Analytics, global consumer and advertising spending on TV and video will grow from $490 billion in 2017 to $559 billion in 2022, an increase of $69 billion. Spending on over-the-top (OTT) video is expected to account for 90% of the growth.
Consumer spending and digital video ad revenue from OTT video services such as YouTube, Facebook, iTunes, Google Play, Netflix, Amazon Prime Video, Hulu, DirecTV Now, NOW TV, Maxdome, iflix, and other online video services is expected to double over the forecast period, reaching $123 billion in 2022.
"OTT TV and video services will be the driving force behind future revenue," said Michael Goodman, director, television and media strategies, at Strategy Analytics. "However, traditional TV and video services should not despair too much, as they will continue to account for the majority of consumer and advertising spend for the foreseeable future."
By 2022, consumer and advertising spend on traditional TV and video products and services globally is expected to exceed $435 billion, an increase of $7 billion from 2017, and account for nearly 78% of all TV and video revenue.
Additional findings indicate:
- In 2022, North America is expected to continue to be the largest TV and video market, accounting for 38.7% of global consumer and advertising spending on TV and video.
- IPTV is expected to buck the cord cutting trend in Western Europe. While cable (predicted net loss of €987 million), pay satellite (predicted net loss of €187 million), and pay DTT (predicted net loss of €125 million) are expected to see revenues decline over the next five years, IPTV is expected to reach €9.9 billion in 2022, an increase of €1.5 billion.
- In 2022, the Asia-Pacific region is expected to account for 23.4%% of global consumer and advertising spending on TV and video. Unlike North America and Western Europe, where consumer spending on legacy pay TV services are flat or declining, in Asia-Pacific, consumer spending on legacy pay TV services is expected to continue to see robust growth, driven largely by China and India.