Global Online Video Spend to Hit $3.5b in 2011

Boston, Mass., December 9, 2011--Global consumer spend on online video has exploded in 2011, according to the latest research from Strategy Analytics, “Global OTT Video Forecast: Q4 2011.” Global online video spend will soar to $3.5 billion in 2011.

While transactional revenue growth is slowing in maturing territories, subscription revenues driven by specialists—such as Netflix and Hulu—will grow as service providers target new markets. Netflix entry into the UK in 2012 will sharpen an already competitive market as OTT services ramp up availability across a range of connected devices. Movie studios and other content owners are also likely to benefit as competition to secure the best movie and TV content intensifies.

“Despite healthy growth in 2011 across most major markets, online video revenues will still struggle to compensate for long-term declines in packaged video spending for years to come,” said Ed Barton, Director of Digital Media at Strategy Analytics. “Online retail growth in particular is flattening in maturing markets. In what is becoming a recurring theme, consumers do not value ownership of digital media to the same extent they did for packaged media.”

These findings form a part of the research available to Strategy Analytics subscribers in which online video spending is broken down by online retail, online rental and subscription spend, as well as online video advertising, over the years 2007-2016.