PwC Predicts OTT Market to Double by 2017
From their “Global entertainment and media outlook 2013–2017” report, PwC predicts that growth in the over-the-top market will more than double in the next four years. Whereas OTT streaming content only accounted for 3% of the total entertainment market in both 2008 and 2008, PwC says it accounts for 7% this year and predicts it will rise to 16% by 2017.
PwC also foresees similar increases in OTT revenues in the coming years. Per the report, 2013 should yield over $6.57 billion while 2017 will most likely bring in $17.44 billion as other streaming and Internet-to-TV services become more prevalent. This is certainly good news for companies like Machinima, which are looking to offer OTT services for their content.
Perhaps as another indicator that more audiences will be staying at home, the study also predicts that electronic home video spending (which includes OTT and purchases/subscriptions made through TV) will be shy of box office spending by about $713 million in 2016, and surpass it by $1.28 billion in 2017.
Video revenues had a successful 2012, increasing by just under $1 billion in profits for a $3.83 billion-dollar year, putting the industry on track for over $12 billion by 2017.Tags: box office purchases, box office spending, electronic rentals, Global entertainment and media outlook 2013-2017, Machinima, Netflix, OTT services, PwC, video revenues, VOD