Netflix, Hulu subscription VOD drive global online video revs to $3.5BN
Joseph O'Halloran ęRapidTVNews | 09-12-2011 New market data is claiming that global consumer spend on online video has exploded in 2011 and will reach $3.5 billion by the end of the year.
In its "Global OTT Video Forecast: Q4 2011 report, Strategy Analytics says that subscription revenues from the likes of Netflix and Hulu have been the ending of this growth even as transactional revenue growth is slowing in maturing territories.
The analyst adds that Netflixĺs imminent entry into the UK in 2012 will sharpen further an already competitive market as over the top (OTT) services ramp up availability across a range of connected devices. In addition, Strategy Analytics expects film studios and other content owners to benefit similarly as competition to secure the best movie and TV content intensifies.
"Despite healthy growth in 2011 across most major markets, online video revenues will still struggle to compensate for long-term declines in packaged video spending for years to come," said Ed Barton, Director of Digital Media at Strategy Analytics. "Online retail growth in particular is flattening in maturing markets. In what is becoming a recurring theme, consumers do not value ownership of digital media to the same extent they did for packaged media."