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.”

Cinedigm: OTT/Streaming Revenue Up 31%; COVID-19 Drops FY 2020 Revenue 27%,

Home entertainment/over-the-top video distributor Cinedigm July 6 reported that it narrowed its fiscal-year 2020 (ended March 31) net loss 10% to $14.7 million, from $15.9 million in FY 2019. Revenue dropped 27% to $39.2 million, from $53.5 million, largely due to the shutdown of the theatrical business. Cinedigm attributed the revenue decline to its digital projection business.

Meanwhile, streaming revenue increased 59% year-over-year, primarily driven by 466% growth in ad-supported linear television and ad-supported video on demand (AVOD) ad revenue growth. Total streaming-related revenue increased 31% year-over-year, with total sales of $24.4 million. Streaming-related billings now represent more than half of Cinedigm’s entertainment business.

“Clearly, we have made remarkable progress as an OTT/Streaming company over the last year, including achieving profitability in our core business in this fourth quarter by increasing [pre-tax earnings] by $3.5 million or 125% over last year,” CEO Chris McGurk said in a statement.

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McGurk said the distributor now markets a 16-channel OTT portfolio to include about 670 million global devices from more than 40 distribution partners worldwide.

“We grew ad-supported viewers on connected TV’s from zero to 13.2 million in 15 months, almost tripling viewers in just the last 7 months prior to May 31,” he said.

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“We are rapidly scaling up our streaming business to capitalize on the ongoing and permanent [pay-TV] cord-cutting shift towards OTT entertainment,” McGurk said. “Heavy streaming adoption rates, particularly for free, ad-supported linear channels, continue to dramatically accelerate.”

Erick Opeka, president of Cinedigm Digital Networks, said the company’s revised model is driven by signing and launching new channels, increasing distribution footprint, growing viewership, and achieving monetization with scale partners.

“Our focus on these four key areas can be reflected in our results and our deals with the best companies in the industry,” Opeka said. “Given this, Cinedigm has enormous prospects for growth in the coming fiscal year.”

Cinedigm also strengthened its balance sheet with the addition of a 26% ownership interest in China’s Starrise and $15.5 million debt reduction.

“Reducing this debt decreased our interest expense by $3 million annually,” said COO Gary Loffredo.