Global consumer spending on online video has reportedly surged in 2011
According to Strategy Analytics report, ‘Global OTT Video Forecast: Q4 2011.’ global consumer spending on online video has surged in 2011 and will reach $3.5bn in 2011.
While transactional revenue growth is slowing in developed markets, subscription revenues driven by specialists, such as Netflix and Hulu, will grow as service providers target new markets. Netflix entry into the UK in 2012 will sharpen an already competitive market as OTT services increase availability across a range of connected devices. Movie studios and other content owners are also likely to benefit as competition to secure the best movie and TV content intensifies, say the research firm.
Strategy Analytics Director of Digital Media Ed Barton said despite healthy growth in 2011 across most major markets, online video revenues will still struggle to compensate for long-term declines in packaged video spending for years to come. "Online retail growth in particular is flattening in maturing markets. In what is becoming a recurring theme, consumers do not value ownership of digital media to the same extent they did for packaged media," Batron added.