The challenge for OTT providers is to balance the high costs of original content production with pricing that continues to attract subscribers without squeezing margins.
According to PwC’s Global Entertainment and Media Outlook 2018-2022 report, the researcher said total OTT revenue reached $20.1 billion in 2017, a 15.2% increase over the prior year. That pace should slow slightly to 12.2% in 2018, when total revenue is expected to reach about $22.6 billion. By 2022, PwC predicts total OTT revenue will grow to $30.6 billion.
SVOD revenue accounted for 79.6% of OTT revenue in 2017 – niche players are increasingly making a dent in the overall business