Advertising and subscriptions are the foundation of the consumer video entertainment business, and opportunities are shifting towards mobile venues, which explains the keen interest some tier-one service providers see in mobile video and mobile advertising.
Mobile display Internet advertising revenue overtook wired display Internet advertising in the United States in 2016, and continued to grow its share in 2017. As this trend continues over the next five years, mobile’s share of the total U.S. Internet advertising market will grow to 72.3 percent in 2022, a 56 percent increase from 2013.
U.S. subscription TV revenue of US$98.9bn in 2017 will contract at a -1.3 percent compound annual growth rate (CAGR) to US$92.7bn by 2022, as streaming alternatives continue to grow, according to researchers at PwC.
The United States is the largest over-the-top (OTT) video market globally, accounting for more than half (55.6 percent) of all OTT revenue in the world in 2017, PwC also says. OTT video revenue in the US reached US$20.1 billion in 2017 after 15.2 percent year-on-year growth.
Growth will likely continue at about an 8.8 percent CAGR will produce revenue of US$30.6 billion in 2022.
So entertainment service providers will seek to make a gradual or managed transition between linear and on-demand modes.
The United States continues to lead the global Internet advertising market, with total revenue of US$88 billion in 2017, about 40 percent of the global total. The market will continue to experience growth through 2022, expanding at a 7.7 percent CAGR between 2017 and 2022 to reach a value of US$127.4 billion.
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