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SVOD revenues to reach $35bn by 2021

ott lifestyle netflixSubscription on-demand-services such as Amazon Prime Video and Netflix will generate annual revenues of US$34.6 billion by 2021, according to Juniper Research.

The Digital TV & Video: Network and OTT Strategies 2016-2021 report reveals SVOD revenues this year will be US$14.6 billion, and SVOD operators will soon see “substantial returns on their expansion and growth strategies” as video consumption remains “in a continual move away from linear, scheduled TV”.

This is thanks primarily to total TV and video data usage growing “five-fold” by 2021, as adoption of 4K increases download sizes. Combined 4K SVOD and TVOD revenues will account for 13% of the OTT total.

Yesterday, a Digital TV Research report forecast global OTT television and video revenues would grow from US$29.4 billion in 2015 to US$64.8 billion by 2021.

However, traditional networks can draw hope from on-demand platforms looking to adapt ‘cord shaving’ strategies by offering select cable channel bundles at low prices, Juniper’s research claimed.

YouTube, for example, is rumoured to be lining up a service called Unplugged, though none of the major US cable providers are yet signed up. The broadcaster-backed Hulu, meanwhile, has revealed it will begin offering limited services for US$35 a month.