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U.S. Ad-Supported VOD Revenue To Outpace China's By 2023

6/27/2019

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U.S. Ad-Supported VOD Revenue To Outpace China's By 2023

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The U.S. will outstrip China as the world’s largest generator of VOD advertising revenue by 2023, according to a new forecast from Digital TV Research.

With estimated OTT movie and TV content ad revenue of $7.78 billion, China commanded a 36% share of global ad revenue associated with OTT movies and TV programming in 2018, according to the research report.

Similar to much of Asia, most OTT viewing in China is on mobile phones, to ad-supported VOD (AVOD) platforms, points out Simon Murray, the research firm’s principal analyst.

Still-expanding use of mobile for video viewing; user-base growth in Tubi, IMBd TV, The Roku Channel and other AVOD platforms (and hybrid Hulu); and in-the-works launches from NBCUniversal and others will drive more than triple growth of AVOD revenue in the U.S., to $19.23 billion, between 2018 and 2024.

That will translate to a U.S. share of 34% of the global (138 countries) total – which is projected to more than double during the period, to $56 billion.

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But China’s revenue, also projected to nearly double during the period, to $16.6 billion, will still represent a significant 29% share of the global total.

The Asia Pacific region as a whole — in which AVOD is well-established —will see its AVOD revenue jump from $10.73 billion in 2018 to $25.14 billion in 2024. Nevertheless, due to AVOD's growth in the U.S. and elsewhere, the region’s share of global revenue will decline from 49% to 45%.

North America will contribute $14.2 billion of the $34.4 billion in incremental global revenue forecast for the period, while Asia Pacific will account for $14.41 billion.





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June 27, 2019 at 12:10PM


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