A new report from Digital TV Research predicts that revenues for ad-supported video-on demand worldwide will reach $70 billion by 2027, more than double the $33 billion revenues logged in 2921. Of the 138 countries covered in the survey, 13 will generate more than $1 billion by 2027, compared to only five countries in 2021.
The five top countries in order of predicted revenues include: U.S., China, U.K., Japan, and India.(opens in new tab)
The report reflects recent trends among the world's largest streaming services that have announced plans to launch ad-supported tiers. Disney+, which has been focusing on developing its own ad technology, announced in March that it was going to introduce ads in an effort to squeeze out more revenues per subscriber and Netflix, in response to sagging subscription numbers, also announced its plans for an ad-supported tier last month.
Simon Murray, Principal Analyst at Digital TV Research, said: “U.S. AVOD will grow by $19 billion to $31 billion by 2027—remaining the largest country by far. The US has the world’s most sophisticated advertising industry by some distance, plus AVOD choice is greater in the U.S. than anywhere else. The U.S. will account for 46% of the global total by 2027, up from 39% in 2021.”
Second-placed China slumped in 2020 due to its economic downturn and it will take until 2024 for China to better its 2019 total, the report noted. 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.
Tom has covered the broadcast technology market for the past 25 years, including three years handling member communications for the National Association of Broadcasters followed by a year as editor of Video Technology News and DTV Business executive newsletters for Phillips Publishing. In 1999 he launched digitalbroadcasting.com for internet B2B portal Verticalnet. He is also a charter member of the CTA's Academy of Digital TV Pioneers. Since 2001, he has been editor-in-chief of TV Tech (www.tvtech.com), the leading source of news and information on broadcast and related media technology and is a frequent contributor and moderator to the brand’s Tech Leadership events.
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