Amazon and Netflix will charge up the OTT and streaming video market, which Juniper Research predicts will reach total global revenues of $120 billion by 2022.
That figure from Juniper represents a significant bump up from the $64 billion in total OTT revenue for 2017.
Along with that boost in OTT revenue will be a correlated boost in OTT subscribers. Juniper said that more than a quarter of global households will subscribe to SVOD services by 2022.
Juniper points out, though, that SVOD’s rapid growth is hinged upon services like Netflix radically outspending more traditional media outlets. The firm predicts Netflix will spend $6 billion on content in 2018—Netflix itself said it plans to spend between $7 billion and $8 billion next year—which is significant compared to the relatively small budget of a publicly funded programmer like the BBC, which will spend $1.4 billion in 2018.
“Success will hinge on whether these providers can continue to produce hits such as ‘Stranger Things’. As consumers become more fluid in their uptake and loyalty to video services, OTTs could just as easily see users switch off,” said research author Lauren Foye in a statement.
Juniper expects that SVOD services will continue to emerge with significant bidders for sports rights as they continue competing with traditional media. The firm expects that Amazon will bid for Premier League soccer rights when they become available in February 2018.