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Global video revenues reach US$70bn driven by online services

Total global video revenues reached US$70.2 billion (€56.5 billion) in 2017 driven by the online segment and the rise of subscription services like Netflix and Amazon Prime Video, according to Strategy Analytics.

The research firm said the video revenue figure included online, physical media and advertising, though noted that online accounted for 84% of the total video market – up from 52% in 2013.

From 2013-2017 the total video market grew its revenue by US$29.4 billion, with this tipped to rise by another US$36.3 billion over the next four years. This will mean that global video revenues will reach $106.5 billion in 2021.

Subscription VOD revenues rose by more than a third in 2017 and are forecast to reach nearly US$50 billion by 2021, while advertising now accounts for 38% of total video revenues. Physical media such as DVDs and Blu-ray Discs accounted for 16% of revenue in 2017, down from 76% in 2010

“The online video market is being driven by subscription-based business models and advertising, alongside  a relative decline in download-to-own and rental models,” said Michael Goodman, director, TV and media strategies at Strategy Analytics.

“Netflix and Amazon are the headline acts but many other streaming video services around the world are also gaining traction as the video market continues to expand.”

The US accounted for the largest share of global online video revenue in 2017 (47%), followed by China (10%) and Japan (6%), according to the research.