IHS: European Home Video Spending to Top $9.7B by 202017 May, 2017 By: Erik Gruenwedel
Netflix and Amazon Prime Video’s global expansion underscore growing consumer appetite in Western Europe for subscription streaming video.
The market is projected to spearhead a 3.5% compound annual growth rate in consumer home video spending to $9.7 billion (€8.7 billion) by 2020, according to new data from IHS Markit.
The home video market in Germany, France and the United Kingdom grew 2.6% in 2016 to $8.8 billion (€7.9 billion). The sector is composed of DVD, Blu-ray Disc, electronic sellthrough, transactional VOD and SVOD.
The U.K., Germany and France continue to be the three biggest European markets for home video. Combined, these countries accounted for 75% of transactional consumer spending on home entertainment video in 2016, and about 52% of subscription video spending.
IHS Markit contends SVOD spending will continue to monetize markets where consumers historically demonstrate lower propensity to spend on transactional video.
The London-based research firm forecasts packaged-media spending will continue to decline, dropping by 47% over the next four years, to $2.2 billion (€1.96 billion).
The transactional VOD market will see moderate growth, valued at $1.3 billion (€1.2 billion) by 2020, a 23% increase from 2016. Spending on SVOD will reach $6.1 billion (€5.5 billion) in 2020, a 78% increase.