Analysis: OTT revenue to pass $50bn in 2017
December 20, 2016
In a report, Top Ten Digital Media Predictions for 2017, Strategy Analytics Digital Media Strategies (DMS) service highlights the trends and events that will shape OTT video, digital advertising and VR in 2017.
“As a result of the proliferation of broadband and connected devices consumers have more choices than ever in how, when, and where they connect with music, games and video,” according to Michael Goodman, Director, Digital Media Strategies. “As consumer adoption of online alternatives grows the degree of disruption felt by traditional distribution models is accelerating.”
Top Ten Digital Media Predictions for 2017
- Brands will re-evaluate the importance of reach.
- Beginning with the upfront, television advertising in the US will start to be bought and sold based upon Total Audience Ratings.
- Digital video will account for a larger part of ad spend. Global digital video ad spend will surpass $20 billion in 2017, accounting for 18 per cent of global digital ad spend.
- While OTT video will garner the hype, traditional television will reap the rewards. In 2017, television revenues (subscription + advertising) will account for 88 per cent of the $192.7 billion television and OTT video market in the US.
- Twitter will be sold.
- Programmatic advertising will become mainstream in Western Europe as digital display programmatic ad spend accounts for nearly half of digital display ad revenue in 2017.
- Live video, especially live video via social networks, will gain a significant audience.
- Driven by the steady growth of SVoD and OTT video ad revenue, global OTT video revenue will surpass $50 billion in 2017.
- Virtual MPVDs will be hot.
- Project Scorpio will launch with VR support.