PricewaterhouseCoopers predicts that over-the-top revenue, which grew 15.2% in 2017, will rise at an 8.8% annual clip from 2018 to 2022, fueled by increased growth internationally and the focus on original content.
According to PwC’s Global Entertainment and Media Outlook 2018-2022 report, the researcher said total OTT revenue reached $20.1 billion in 2017, a 15.2% increase over the prior year. That pace should slow slightly to 12.2% in 2018, when total revenue is expected to reach about $22.6 billion. By 2022, PwC predicts total OTT revenue will grow to $30.6 billion.
While the sector is largely dominated by Netflix, Amazon, and Hulu – PwC said SVOD revenue accounted for 79.6% of OTT revenue in 2017 – niche players are increasingly making a dent in the overall business. PwC noted that anime and manga service Crunchyroll reached 1 million subscribers in 2017, streaming more than 1.5 billion minutes of content per month, while U.K.-centric BritBox reached 500,000 customers.
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