Published on April 18th, 2018 | by Brad Gibson0
How big is the streaming video business about to grow? $16.6 billion big
The online streaming video industry has a bright future, according to a new study. Very bright.
Revenue for streaming media companies like Netflix, Apple, Amazon, and dozens of others will reach $16.6 billion this year – a 40 percent jump over 2017 – and top $25 billion in 2020, according to a study from the consulting firm, Convergence Research Group.
Revenue from streaming services – what the industry calls ‘over-the top’, or OTT providers – hit $11.9 billion in 2017. Some 32.13 million US households did not have a traditional TV subscription like cable and satellite by the end of 2017, a number that will increase to 36.76 million by the end of this year.
As a result of this growth, revenue from traditional pay-TV services grew just one percent in 2017 to $107.6 billion and the firm expects that revenue this year to see a slight decline. Pay-TV lost an estimated 3.66 million subscribers in 2017, up from 2.2 million in 2016, and should lose another 3.72 million in 2018, according to the company.
“The gloves are off,” the report concluded. “The TV-Movie Industry is being reconstructed from the inside and by the outside, as programmers now directly compete against their traditional TV access and independent OTT buyers that rival in terms of content spend.
“We expect especially for the US market going forward fewer content deals between programmers and independent OTT providers…Programmers have read the writing on the wall and have already gone, or are in process of going direct to consumer, again at competitive price points.”