Global spending on consumer video media services will total $314 billion in 2017, a 4.2 percent increase from 2016, according to Gartner, Inc. Pay-TV services is the largest spending segment and is on pace to represent 90 percent of the total market, totaling $282 million in 2017.
In 2017, emerging Asia/Pacific (20.8 percent) and Middle East and North Africa (17.4 percent) are forecast to record the highest growth in end-user spending on consumer video media services. Moreover, internet-delivered linear TV services have already been launched in India and the Middle East, and Gartner expects these services will commence across all emerging regions by 2018. “We estimate that, incentivized by lower prices, one million households in emerging regions will enter the Pay-TV market through an internet TV service by 2020,” said Mr. Elizalde. “The dramatic difference in the price of these packages compared with traditional Pay-TV packages will also put downward pressure on ARPUs overall.”
Table 1: End-User Spending on Consumer Video Media Services, by Service Category, Worldwide, 2016-2020 (Billions of Constant U.S. Dollars)
|
|
2016
|
2017
|
2018
|
2019 | 2020 |
| Pay-TV Services | 275.2 | 282.0 | 288.4 | 302.5 | 309.1 |
| S-VOD Services | 14.6 | 18.7 | 22.9 | 26.6 | 30.1 |
| T-VOD Services | 11.8 | 13.6 | 15.5 | 17.5 | 19.2 |
| Total Video Media Services | 301.6 | 314.3 | 326.9 | 346.6 | 358.4 |
“Currently, there is a market for niche subscription video services and established streaming providers. However, as the market matures, we forecast more consolidation around the fewer companies that can innovate and set themselves apart from the juggernauts within the industry,” said Derek O’Donnell, senior research analyst at Gartner.
