The global accounting firm PricewaterhouseCoopers (PwC) has predicted that revenue for the global over-the-top (OTT) entertainment market will reach $72.8 billion by 2023. According to the report, pushed by a growing desire for video streaming services, that figure reflects a 13.8% CAGR. Growth is increasing steadily in developed countries, but much more aggressively in less-developed areas. The 2018-2023 global CAGR for SVOD is 15.4%, while that for TVOD is only 6.5%.
PWC has also forecasted that India and Nigeria among emerging markets will drive the maximum digital advertising growth. For example, digital advertising growth in India (17.5 per cent) and Nigeria (14.4 per cent) is expected to grow well above the industry standard (9.5 per cent), according to PwC’s insight. Meanwhile, both nations are anticipating substantial growth in data consumption too (40.9 per cent in India and 44.9 per cent in Nigeria), spurred by the rollout of 5G connectivity.
Earlier PwC India had released report on India’s video streaming industry and according to that the Indian market is all set to grow at a CAGR of 21.82% to reach Rs. 11,977 crore by 2023. The report stated that the over-the-top (OTT) video industry will record the highest growth rate among all segments and drive evolution over the next four years in the overall media and entertainment industry in the country that will rise by 11.28% to reach Rs. 4,51,405 crore.The M&E sector was valued at Rs. 2,64,588 crore in 2018.“India is the fastest growing entertainment and media market globally and is expected to keep that momentum. Our research shows that in the next five years India will see significant growth in OTT, online gaming and Internet advertising. Growth in these sub-sectors spurs from the growing trends around personalization and increased digitalization,” Rajib Basu, partner and leader – entertainment and media, PwC India declared in the report.
On the global front, PwC reports says that OTT video revenues were 18.6% the size of global TV subscription revenue in 2018. But thanks to strong growth it will rise to 35.4%the size in 2023.
As viewers take on more streaming services, the opportunity now is for aggregators, PwC believes. While Netflix and Amazon are innovative, consumers desperately want to have one central place where they can find something to watch. Pay TV companies currently have a window to solve the fragmentation problem before digital companies like Amazon, Apple, and Google—or some third-party—bring their own solutions to market.