Online video spurs W Europe consumer spending
May 18, 2017
Critical information, analytics and solutions specialist IHS Markit expects total consumer spending on home video in Western Europe to increase with a CAGR of 3.5 per cent per year, to reach €8.7 billion by 2020. The market demonstrated confident expansion over 2016 at 2.6 per cent, reaching €7.9 billion. The home video sector is defined as being composed of physical video disc, paid-for online video (electronic sell-through, or EST, and iVideo-on-Demand, or iVoD) and subscription online video.
The UK, Germany and France continue to be the three biggest markets for home video entertainment. Combined, these countries accounted for exactly three-quarters (75 per cent) of transactional consumer spending on home entertainment video in 2016, and about half (52 per cent) of subscription video spending. Subscription spending will continue to monetise markets where consumers historically demonstrate lower propensity to spend on transactional video.
IHS Markit’s forecasts state that physical disc spending will continue to decline, dropping by 47 per cent over the next four years, to €1.96 billion. The online transactional video market will see moderate growth, being valued at €1.2 billion by 2020, a 23 per cent increase. The spending on subscription online video will reach €5.5 billion in 2020, a 78 per cent increase.