The VoD market in Europe faces a bright future, at least according to ITMedia Consulting’s Report.
The report by the Rome-based consultancy, Video on Demand in Europe: 2019-2022 – The Netflix’s Throne, predicts VoD will surpass the €10 billion mark in 2022, with a double-digit CAGR of 12 per cent. The total revenue growth in the period 2018-2022 will be €4 billion.
The VoD market is divided among SVoD (77 per cent of the total) and TVoD (23 per cent), with Netflix accounting for more than 50 per cent of SVoD revenues, thanks to continued growth in UK, France and Germany.
In fact, SVoD will have the highest growth and in 2022 will account for 81 per cent of the VoD market as a whole.
Increasingly, content owners, such as Disney and Apple, are starting to roll out their own streaming services, investing in content, technological advancements, cross-sector partnerships and consolidation.
Online video consumption already accounts for 42 per cent of consumer viewing time, but while trends vary from country to country. However, it is clear that traditional TV services alone are increasingly considered insufficient, with audiences increasingly subscribing to Netflix, Amazon Prime Video or other OTT video services.
By 2022, more IP traffic will cross global networks than in the 32 years since the Internet started, thanks to the hype around 5G and the arrival of new global operators, focusing on the ‘smart home’ concept.