Western Europe embraces OTT services, Netflix dominates
New data from research firm Digital TV Research estimates that OTT video revenue in Western Europe will exceed $23 billion by 2023, up from the current figure of $9.84 billion.
OTT video services deliver video content via the Internet without going through the traditional cable, satellite broadcast routes. SVOD platforms like Netflix and Amazon Prime Video are popular examples of OTT services, and such platforms are expected to earn 54% of all OTT revenue by 2023, up from the 45% in 2017.
The U.K. is expected to remain the largest revenue earner for OTT video services, with 30% of all revenue coming from the country, both now and in 2023.
Digital TV Research predicts that by 2023, 69.3% of Western European TV households will subscribe to an SVOD platform, up from 38.4% in 2017. This equals roughly 98.85 million SVOD subscribers across Western Europe, up from 50.34 million in 2017. 15 million new subscribers are expected in 2018 alone.
Digital TV Research expects Netflix to continue to dominate the SVOD market, with half of all SVOD users subscribing to the platform in 2023 (49.75 million subscribers). The number of subscribers to Amazon Prime Video are expected to be half of this at the time (22 million subscribers).