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Report: Global Consumer Digital Video Spend to Reach $202 Billion in 2018

7 Nov, 2017 By: Erik Gruenwedel



Proliferation of subscription video-on-demand and over-the-top video globally will help drive consumer spending on digital content to $202 billion in 2018, up 10% from this year’s total of $184 billion, according to new data from Jupiter Research.

Not surprisingly, the data suggests consumers continue to migrate toward SVOD pioneers Netflix and Amazon, which have committed a combined $10 billion on original content in the coming year. Meanwhile, Apple and Facebook are each expected to invest at least $1 billion in content for the first time.

London-based Jupiter said 35% of households in the United Kingdom subscribe to one or more SVOD services, a percentage that rises to 76% in the United States. Furthermore, Juniper contends the trend toward multiple subscriptions per household is increasing, leading to a greater opportunity for content aggregation and curation.

Separately, there are indications OTT players may be poised to disrupt the market by bidding on major sporting rights. Although Facebook failed in its recent bid for the worldwide IPL (Indian Premier League) cricket rights, the report claimed that Amazon or Facebook would bid for, and probably win, at least one major live rights package in the forthcoming auction for England’s Premier League football games.

Amazon Prime Video in the U.S. currently streams 10 Thursday National Football League broadcasts.

“Amazon is in a particularly strong position here, because sports packages could be bundled within Amazon Prime, with the additional retail spend generated by new customers significantly reducing the scale of net additions required to recoup the rights costs,” Dr. Windsor Holden, research analyst at Jupiter, said in a statement.

The research also found that both telcos and OTT players are seeking to augment offerings with the acquisition of e-Sports rights, and suggest that ultimately players might evolve from creating their own teams to developing and owning e-Sports tournaments.

 


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