Research: US OTT moves towards maturity
August 21, 2023
The boom years for US OTT are over, according to the North America OTT TV & Video Forecasts report from analyst firm Digital TV Research. US OTT TV episode and movie revenues will reach $82 billion (€75bn) in 2029, up from $74 billion in 2023. SVoD revenues will increase by only $2 billion to $55 billion – with little growth from 2025.
AVoD for TV series and movies will contribute $22 billion by 2029; up from $16 billion on 2023. FAST (advertising on online linear channels) will account for $6.5 billion of the AVoD total in 2029; up from $4.3 billion in 2023.
“These forecasts reflect the new reality,” advises Simon Murray, Principal Analyst at Digital TV Research. “Subscriptions are stuttering as the market matures and consolidates. Advertising growth will be lower than our previous forecasts due to tougher market conditions and greater caution from the platforms. Platforms are more wary about increasing content spend which will stifle subscriber development.”