Home Newswire Global AVOD revenues will double to reach $70B by 2027

Global AVOD revenues will double to reach $70B by 2027

A new forecast by Digital TV Research predicts global AVOD revenues will increase by $37B between 2021 to 2027, more than doubling to reach $70B. Global OTT revenues will rise to $224B by 2027, with the U.S market commanding 45% of that total.

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Digital TV Research has forecast that global AVOD revenues will increase by $37B between 2021 and 2027, more than doubling to reach $70B. AVOD growth in the United States will also continue to soar, with revenues rising by $19B to $31B in 2027 and accounting for 46% of the global total (an increase from 39% in 2021).

Simon Murray – Principal Analyst at Digital TV Research – attributes the continued success of AVOD in the U.S. to the market’s variety of choice and because it has “the world’s most sophisticated advertising industry by some distance.” The research company also forecasts that 13 other markets will generate more than $1B in AVOD revenues.

Global OTT revenues will continue to rise, reaching $224B in 2027 – up from $135B in 2021. The research company predicts a rise of $21B of OTT revenues in 2022 alone, and that, in 25 countries, OTT revenues will exceed $1B by 2027. Digital TV Research forecasts total SVOD revenues will grow from $48B in 2021 to $136B in 2027, with total SVOD subscriptions reaching 1.69B (up from 485 million).

For OTT, the U.S. market will contribute $106B to global revenues by 2027 – an enormous 45% of total revenues – in second place is China. The research company commented: “Second-placed China slumped in 2020 due to its economic downturn. It will take until 2024 for China to better its 2019 total. t will take until 2024 for China to better its 2019 total. In 2021, the government clamped down on fan-based culture, which resulted in far fewer reality shows from the OTT platforms – and less viewer demand.”

In Western European markets, the UK contributes the largest share to OTT revenues with $6B earned in 2021 (24% of total OTT revenues for the region). By 2027, the UK will generate $10B in OTT revenues – 22% of the region’s total OTT revenues as other markets grow faster.

Murray said: “SVOD far exceeds any other revenue source for Western Europe. SVOD will increase by $13 billion between 2021 and 2027 to $30 billion. AVOD will add $6 billion to reach $12 billion.”

The research company predicts that SVOD subscriptions in the region will climb to 258 million by 2027 from 164 million by the end of 2021, with Germany overtaking the UK in 2026.


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