OTT Video in Western Europe Will Be a $23B Industry by 2023
Over-the-top (OTT) video revenue in Western Europe is growing quickly, forecasts Digital TV Research. It projects that OTT revenue will grow from $9.8 billion in 2017 to $23.0 billion in 2023.
Of that, the largest share will come from subscription video-on-demand (SVOD) services, which will take in $12.5 billion in 2023, up from $4.4 billion in 2017. That means SVOD will count for 54 percent of the total market, up from 45 percent in 2017. SVOD became the largest area in Western Europe OTT in 2016; prior to that, ad-supported video-on-demand (AVOD) was the largest contributor.
In 2023, AVOD will pull in $6.9 billion, download-to-own (DTO) will make $2.2 billion, and rentals $1.4 billion.
Breaking the numbers down by country, Digital TV Research sees the U.K. keeping its place as the biggest spender on SVOD, It spent $2.9 billion in 2017 and that will grow to $6.8 billion in 2023, counting for nearly one-third of all Western Europe OTT spending.
In 2023, 69.3 percent of all Western European households with TV will have an SVOD subscription, a big leap from the 38.4 percent at the end of 2017. At that time, Norway will have the highest proportion of subscriptions.
Netflix is the most popular SVOD, and that will remain. It should have 49.8 million subscribers in Western Europe in 2023. The next most popular will be Amazon Prime Video with 22 million subscribers.
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