U.S. advertisers will spend almost $7 billion this year on connected TV ads. Connected TV is growing rapidly as advertisers look to target audiences watching long-form, premium digital content on their living room screens.
The largest pay-TV providers in the U.S. — representing about 93% of the market — lost about 1,530,000 net video subscribers in 2Q 2019, compared to a pro forma net loss of about 420,000 subscribers in 2Q 2018. The future outlook is equally gloomy.
Advertising expenditure attributed to OTT TV episodes and movies will more than double between 2018 and 2024 to reach $56 billion across 138 countries. Online TV and video ads have been considerably boosted by the rapid growth in mobile advertising.
via Digital TV
U.S. pay-TV ‘cord cutting’ in 2018 increased by 25% from 2017, due to the overall growth of SVOD internet streaming services. Satellite pay-TV providers suffered the largest loss of subscribers, followed by cable and telco service providers.
via MIDiA Research
In markets such as North America and Europe, traditional pay-TV operators have jumped into the OTT market to improve subscriber churn by providing less costly video service. Can they compete with the innovative OTT providers? Is this already a lost cause?
According to Juniper Research, Subscription Video on Demand (SVoD) services — from leading providers such as Netflix and Amazon — will drive a surge in OTT revenues to reach $120 billion in 2022, and that’s up from $64 billion in 2017. In this environment, the traditional expensive bundle of pay-TV services will surely continue their decline.