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North America to Add 7.1 Million SVOD Customers in 2015

25 Jun, 2015 By: Erik Gruenwedel

United States, Canada top 57 million combined subscription streaming customers by year’s end

Buoyed by ongoing consumer interest in Netflix, Amazon Prime Instant Video and Hulu Plus, North America is projected to add more than 7.1 million subscription streaming households in 2015, according to new data from Digital TV Research.

There will be about 57.8 million SVOD households in the United States and Canada compared with 2010, when there were 16.7 million SVOD homes (13% of TV households). The total is forecast to climb to 76.5 million by 2020 — up by 26 million on 2014 — giving 57% penetration of TV households and 65% of fixed broadband homes.

SVOD revenue will soar from $790 million in 2010 to $4.46 billion in 2014 and onto $7.09 billion in 2020. Revenue will grow by 59% between 2014 and 2020.

North American OTT video revenue will reach $20.5 billion in 2020; up from $2.6 billion in 2010 and the $13.2 billion expected in 2015.

Advertising on OTT sites will generate revenue of $6 billion in 2015, quadruple the $1.4 billion in 2010. Rapid advertising expenditure growth will continue, reaching $10.3 billion in 2020.

Electronic sellthrough revenue is projected to hit $2.2 billion in 2020, up from $321 million in 2010 and $1.2 billion in 2014. Movies will contribute two-thirds of EST revenue by 2020, with TV series providing the rest.

Transactional VOD and pay-per-view revenue will climb from $169 million in 2010 to $591 million in 2014 and to $999 million in 2020. Movies will be the primary sales generator with $715 million by 2020. As a result, TV boxed sets will become more popular than single episodes.

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