GLOBAL OTT VIDEO SUBSCRIPTIONS PROJECTED TO REACH 2 BILLION IN 2025

Juniper Research, released its new report, “OTT TV & Video Streaming: Evolving Trends, Future Strategies & Market Forecasts 2020-2025,”  which indicates that nearly 2 billion active subscriptions to on-demand video services in 2025. The figure reflects a 65% increase through the end of 2020. The growth is mainly driven by traditional broadcasters, who are increasingly turning to streaming services in order to extend their reach and compete with online video giants such as Netflix and Amazon Prime Video.

The new research notes that traditional broadcasters are now combining subscription- and advertising-supported monetization. Some of the conglomerates implementing this strategy are NBC’s Peacock, and CBS All Access, which offer tiered services generate revenue from the subscriptions but present lower-priced advertising bands to control price increases. The researcher expects these services to account for USD 1.4 billion in advertising spend in 2025.

The report shows that over 70% of streamed video sessions in the next five years will occur on smartphones resulting from the popularity of social videos on platforms such as TikTok. However, smartphone advertising spend will only grow at an average rate of 2% each year over the forecast period.

As subscription services become increasingly prominent, particularly in the US, different models will be needed to combat subscription fatigue. The report estimates that in 2020 there was an average of four SVOD subscriptions per household in the US, but with growth slowing significantly from 2021. “Thanks to this high level of market saturation, streaming providers need to keep their offerings competitive to retain subscribers," Research Co-author Nick Hunt, said. “Hybrid monetisation is one way that VOD providers can keep their offerings low-cost, and therefore less likely to be dropped.”