Global Video market to grow 4% annually to 2020
Pascelae Paoli-Lebailly ©RapidTVNews | 18-10-2011 New research from Idate is predicting that the global video market will grow at an average annual rate of 4% between 2010 and 2020.
According to its recent report on the future of television, Future TV: 2020 – Taking it to the We, Idate expects the TV market to enjoy sizeable growth margins despite traditional networks facing increasingly stiff competition from new forms of distribution such as OTT and mobile.
Drilling down, Idate believes that live services will grow by 2%, compared to 20% for advanced video services and that the markets in France, the UK and the United States will all grow by 2%.
Idate estimates new video services combined (fixed and mobile) will account for 10% of the global video market in 2015 and 20% in 2020. It forecasts the global video market to grow at a slightly higher rate (4.5%) than the pay-TV market (3.7%) between now and 2020. The traditional pay-TV market is expected to be the main source of market growth from 2010 to 2015, but OTT advertising will take over from 2016 to 2020. OTT is expected to account for 51% of the new video services market in 2020, mobile for 27% and managed networks for 22%.
However the analyst warns that migration of services to the online video channel may call existing revenue-sharing schemes into question, with channel operation being the weakest link in the chain and facing a dual threat: seeing new entrants win control of selling ad space, and seeing copyright owners and distributors form a direct alliance to market paid services.
“It is only by retaining their core functions on the Web that TV networks, in a not terribly dynamic market, will be able to enjoy even slight growth,” commented Idate’s deputy CEO, Gilles Fontaine. “To achieve this, it is crucial that they maintain tight control over programming rights.”