In a cruel twist of irony, subscriptions are becoming ever-more essential to the survival of AVoD platforms. The stalwarts of internet video are set to bring in over $546 billion in revenue over the next five years, but the ad-supported business model which many of these platforms pioneered is clearly serving them no longer.
Western Europe will lose nearly 9 million pay TV subscribers between 2023 and 2029 to reach 93 million – down by 8%. This is nowhere near as bad as the US as pay TV penetration will still be 53% by 2029 – down from 58% in 2023 according to Digital TV Research.
North American OTT TV episode and movie revenues will reach US$ 100 billion in 2029; up from US$ 81 billion in 2023. The US will contribute US$ 16 billion from the US$ 19 billion additional revenues, with Canada supplying the rest. US revenues will be $92 billion in 2029 according to Digital TV Research.
The latest research from Ampere Analysis finds that total revenues from streaming (including advertising revenue from hybrid streaming subscription tiers) will overtake revenues from pay TV subscriptions in the US for the first time in Q3 2024. Streaming will continue to race ahead as traditional pay TV declines - with the value of pay TV in 2028 expected to fall to half the value it saw at its peak in 2017. The new analysis comes from Ampere’s continuously updated Markets Operators data service.