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OTT Video Revenue Booming in Western Europe

Ongoing proliferation of Netflix and Amazon Prime Video subscription streaming video services is having implications across Western Europe.

OTT video revenue will reach $23.02 billion in 2023; more than double the $9.84 billion recorded in 2017, according to new data from Digital TV Research. Revenue for 18 countries is expected to climb by $2.63 billion in 2018 alone.

“The [United Kingdom] is the largest OTT revenue earner in the region by some distance: Its $2.98 billion generated 30% of the 2017 total,” Simon Murray, principal analyst at Digital TV Research, said in a statement. “The U.K.’s $6.80 billion in 2023 will represent a similar proportion.”

SVOD became the region’s largest OTT revenue source in 2016 and will reach 54% by 2023, up from 45% in 2017.

SVOD revenue will almost triple by reaching $12.47 billion in 2023 – up from $4.44 billion in 2017. The U.K. will remain the SVOD revenue leader by some distance – generating as much as second-placed Germany and third-placed France combined by 2023.

DTR estimates Western Europe will have 98.85 million SVOD subscribers by 2023, up from 50.34 million at end-2017. Nearly 15 million subs will be added in 2018 alone, with 11 million more expected in 2019.

By 2023, 69.3% of Western European TV households will subscribe to an SVOD platform; up from 38.4% at end-2017. Norway will have the highest proportion at 104.8% by 2023. Germany, Italy, France and Spain will all fall below the regional average by 2023.

Netflix will remain the largest SVOD platform by some distance, with 49.75 million paying subscribers in 2023 – or half of the region’s total. This is the same as the 2017 proportion. The 2023 total includes 22 million Amazon Prime Video subscribers.

 

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