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Global home video and Pay TV market up 3% in 2016; Pay TV holds its share of market

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Households worldwide are spending more than ever on video entertainment and in 2016 the combined home video and Pay TV market totalled $251.5 billion, up by 3% compared to 2015. The figures are from Futuresource Consulting, which has recently released its annual evaluation of the global home video entertainment market. Tristan Veale, Market Analyst at the company, adds: “Overall video entertainment spend is set to rise to $280 billion by 2020, with a CAGR of 3%. In 2016, Pay TV accounted for 86% of global video entertainment spend, with the Pay TV share of the market to remain stable, as growth is in-line with spending on both physical and digital home video.”

Following growth of 30%, digital expenditure reached $22 billion in 2016, exceeding the value of physical (DVD/Blu-ray), which fell to $18 billion. Digital video spend was $17.5 billion in 2015.

In 2015, 60% of digital spend was on SVOD. SVOD was the standout performer of 2016, too, and momentum is expected to continue well past 2020, Veale reveals. “Globally, we expected the market to reach 236 million global subscriptions at the end of 2016 and this is projected to almost double to 485 million by 2020.” The company says Netflix’s domination in this segment will be challenged by Amazon and others.

There are some concerns over the ‘softness’ of the market for  transactional digital video, with both rental and buy-to-keep currently under performing, Futuresource says. Thus transactional digital is not making up for a global decline in packaged video spend. Annual spend across DVD and Blu-ray fell by 13% to $21.6 billion in 2015 and is expected to fall to $9.1 billion by 2020.

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