According to Futuresource Consulting the global video entertainment market is in good health-- combined home video and pay-TV spending totals $251bn in 2016, a 3% increase over 2015.
The report covers consumer spending across digital video (SVoD, TVoD, EST, Pay-TV VoD), packaged video (DVD & Blu-ray) and pay-TV. It points out pay-TV accounts for 86% of global video entertainment spending, with the pay-TV share of the market remaining stable as growth is in-line with spending on both physical and digital home video.
The analyst also forecasts overall video entertainment spending will reach $250bn by 2020 with a CAGR of 3%. A "standout" performer in both present and the future is SVoD, with subscriptions reaching 236 million by end 2016, a number set to double to 485m by 2020. Netflix dominates that particular market, even if it is challenged by Amazon and global entertainment companies including content producers, hardware manufactures and telcos.
Meanwhile global packaged video faces decline-- annual spending on DVDs and Blu-ray is down by -30% to $21.6b in 2015, and is to fall to $9.1bn by 2020. The more premium UHD tier of Blu-rays should bring about a minor boost in 2016, but decline for the year is still predicted to clock at around -17% due to exchange rate fluctuations.
Go Futuresource Consulting Global home Video Entertainment Report