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Prediction: UK AVoD revenue to reach £500m

December 10, 2019

Deloitte has revealed its predictions for the TMT sector in 2020.

Among the predictions:

Revenues from AVoD will break £500 million in the UK in 2020 

Deloitte predicts that revenues from advertising supported video on demand (AVoD) will reach £500 million (€594.6m) in the UK in 2020, representing 10 per cent of all television advertising revenues. The forecast for 2020 implies 17 per cent year-on-year growth, compared to five per cent growth for the overall UK advertising market.

Deloitte predicts that by 2025 the majority of streamed services, both mainstream and niche, will rely on advertising as a significant or sole revenue source.

Dan Ison, lead partner for telecoms, media and entertainment at Deloitte, said: “TV viewers are being spoilt with an ever-widening array of some of the best television content ever made. Generating advertising revenue will allow streaming platforms to maintain spend on hit shows and major rights, for both traditional broadcasters and online-only providers. As production costs grow and competitor platforms continue to launch, streaming services must look for new sources of revenue to invest in making stand-out, quality content.”

Industrial 5G will spark productivity gains, as more than 100 companies will begin testing private 5G deployments in 2020

For many of the world’s largest businesses, private 5G will enable ultra-reliable, high-speed, low-latency, power-efficient, high-density wireless connectivity. Deloitte predicts that more than 100 companies worldwide will be evaluating or have deployed 5G in industrial environments such as factories, ports, and logistics centres by the end of 2020.

By 2023, the value of cellular equipment and services for use in industrial deployments will be worth tens of billions of pounds annually.

Dan Adams, head of telecommunications at Deloitte, said: “5G is poised to be the most disruptive mobile technology since the mobile phone itself. The way we work fundamentally changed by the launch of 4G and Wi-Fi. 5G will bring a similar transformation to the connectivity of machines and devices, delivering a boost to productivity in factories and warehouses, in particular. While it’s likely to be a long time until we see autonomous cars on the open road, factories will be full of 5G-enabled autonomous machines from next year.”

Readers will lend their ears to audiobooks, growing UK revenues to £115 million in 2020

In 2020, Deloitte predicts that the global audiobook market will grow by 25 per cent to over £4 billion. In the UK, the value of audiobooks is predicted to reach £115 million in 2020. This suggests 25 per cent growth over 2019 and 30 per cent over 2018.

Deloitte predicts that audiobook revenues are on a trajectory to surpass e-books by 2023 in the US. In the UK, e-readers are now owned by just one in four (26 per cent) consumers, down from 31 per cent in 2015.

Paul Lee, global head of technology, media and telecommunications research at Deloitte, said: “Storytelling is moving back to its traditional spoken form with the rise of audiobooks. Diehard print lovers may still be clinging to the page, but the growing sophistication of headphones and speakers, as well as the use of well-known narrators, is attracting many to tune in to audiobooks instead.

“Silence may be golden, but it is not necessarily the most interesting thing to listen to while commuting, doing chores, or working out. To amplify revenues, publishers will need to think carefully about which titles to release as audiobooks, how many and how often.”


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