European OTT Market Growing to $9.45B by 2018: Strategy Analytics
The European over-the-top (OTT) market is poised for explosive growth in the next four years, finds a report by Strategy Analytics. Prepared by analyst Leika Kawasaki, the report says the market grew by 51 percent in 2013 and now stands at $3.2 billion. Further, it will grow an additional 43 percent this year, and will reach over $9.45 billion by the end of 2018.
The subscription video-on-demand (SVOD) and ad-supported video markets are driving that growth. Netflix saw significant growth in Europe in 2013, rising by 133 percent. It should nearly double by the end of this year.
The report finds strong differences in video revenues for Western Europe and Central and Eastern Europe. SVOD is growing much faster in Western Europe. For Central and Eastern Europe, ad-supported video comprises over 60 percent of total OTT video revenue. The average Western European broadband viewer spends about four times what the average Central and Eastern European viewer does on OTT video.
While European customers might see the online video market as reaching maturity, the report notes that as far as consumption and monetization are concerned, it's just getting started.
The full report, "European OTT Video Revenue to Reach $9.25 Billion by Year-End 2018," costs $7,000 and is available for download.
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2013 saw OTT video services extend the overall market for pay TV, a definite shift to networked PVR, and a rapid move toward HbbTV.