The global spend on consumer video media services will increase by 4.2% from 2016, reaching $314bn in 2017, according to the latest research produced by Gartner . Of that, Pay-TV services will be the largest spending segment, representing 90% of the total market and valued at $282mn in 2017.
The Middle East and North Africa markets, which account for 17.4% of the global share, is one of two markets projected to record the highest growth in end-user spending on consumer video media services. The second market lies with Asia/Pacific, which holds 20.8% of the global share.
Additional findings from Gartner report, "Forecast Analysis: Consumer Video Media Services, Worldwide, 1Q17 Update", showed that 4K transactional video on demand (T-VOD) content will likely increase as consumer spending grows within mature markets. The market intelligence firm projected that end-user spending on T-VOD content in mature regions will increase $160m in 2017 to $400m by 2020.
Derek O'Donnell, senior research analyst at Gartner, said: "OTT-VOD sources are changing the landscape ... OTT-VOD services are the fastest-growing segment in the VOD landscape and eroding pay-TV providers' share of revenue. OTT-VOD sources began outperforming traditional pay-TV sources in 2016."
Meanwhile, the global consumer spend on subscription-based video on demand (S-VOD) is expected to increase by 28% from 2016, reaching $18.7bn in 2017.
"Currently, there is a market for niche subscription video services and established streaming providers. However, as the market matures, we forecast more consolidation around the fewer companies that can innovate and set themselves apart from the juggernauts within the industry," added O'Donnell.