Total consumer spend on home video in Western Europe will increase at a CAGR of 3.5% per year to reach €8.7 billion by 2020, according to IHS Markit.
The research firm claims the home video sector – which includes everything from DVD sales, to paid-for online rentals and subscription VOD services – will be driven primarily by SVOD.
Spending on subscription online video will reach €5.5 billion in 2020, a 78% increase, according to the research.
Transactional video market is tipped to grow 23% by 2020 to reach €1.2 billion, while physical disc spending is expected to drop 47% to €1.96 billion.
“Subscription spending will continue to monetise markets where consumers historically demonstrate lower propensity to spend on transactional video,” said IHS Markit.
The UK, Germany and France were found to be the biggest home video entertainment markets last year and accounted for 75% of transactional spend and 52% of subscription video spend.
In total last year’s home video sector grew 2.6% in 2016 to reach €7.9 billion.