Consumer spending on global home video entertainment grew 3% to $251.5 billion in 2016 from the previous year, according to a new report from Futuresource Consulting.
Futuresource expects the market, which includes pay TV, digital video and packaged video to grow by 3% annually to $280 billion by 2020.
Pay TV accounted for 86% of global video entertainment but SVOD is growing fast.
“SVOD was the standout performer of 2016 and momentum is expected to continue well past 2020,” said Tristan Veale, market analyst at Futuresource.
Futuresource expects SVOD to reach 236 million global subscriptions at the end of 2016 and this is projected to almost double to 485 million by 2020. Netflix’s dominance in the sector is now facing a significant challenge from Amazon, with this space also being targeted by global entertainment companies including content producers, hardware manufacturers and telco’s who are attracted by the significant revenues, Veale said.
Packaged video, including DVDs and Blu-ray, is expected to fall to $9.1 billion in 2020 from 21.6 billion in 2015.
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