Report: North American OTT Revenue to Reach $94 Billion by 2026

Over-the-top TV episode and movie revenue in U.S. and Canada will reach $94 billion in 2026; nearly twice as much as the $49 billion in 2020, according to new data from Digital TV Research. The United States — the world’s most mature OTT video market — will increase by $42 billion to $88 billion. Canada will double to $5.4 billion from $2.7 billion.

Among major OTT providers, Netflix ended 2020 with 73.9 million North American subscribers, including an estimated 16.7 million in Canada. Hulu ended 2020 with 35.4 million subs, while Disney+ totaled 94.9 million, of which 30% alone originate from India. ESPN+ tallied 12.1 million subs. CBS All Access (soon Paramount+) and Showtime OTT combined for 19.2 million, while HBO Max and Peacock totaled 17.2 million and 33 million, respectively. Amazon Prime Video ended 2019 with a reported 53.3 million subs.

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“SVOD and AVOD revenue will each increase by $22 billion between 2020 and 2026,” analyst Simon Murray said in a statement. “AVOD revenue will triple to $33 billion. SVOD will remain the main revenue source, supplying $54 billion by 2026.”

Report: U.S. Fiscal Investment in A.R./V.R. Waning

Financial investment in virtual reality (VR) and augmented reality (AR) technology in the United States is on the decline – and on the rise in China, according to new data from fiscal advisor Digi-Capital.

North American investment in VR/AR fell about 92% to $120 million in the third quarter 2018 from $1.5 billion in Q4 2017. The majority previously invested in smart glasses, video games, location-based entertainment, video, advertising and marketing.

Indeed, global shipments of AR and VR headsets dropped more than 30% this year, according to International Data Corp. A separate report found significant declines in sales of VR headsets on Amazon from Sony, Samsung, Facebook and HTC.

Digi-Capital said global VR/AR investment has declined about 10% per quarter after plateauing at $2 billion in Q4 2017. In China, VR/AR investment has approached $3.9 billion.

Goldman Sachs projects Asia – spearheaded by China – will be become the world’s largest VR market by 2021 with 45% market share.

“American and Chinese investment had an inverse relationship in the last 12 months,” Tim Merel, managing director at Digi-Capital, said in a statement.“American investors increasingly chose to stay on the sidelines, while Chinese investor confidence grew to back up clear vision with long-term investments. The differences in the data couldn’t be starker.”