Researchers Predict Strong Streamer Growth, SVOD to Hit $38 Billion by 2024
While traditional pay TV video may be taking hits, due to the pandemic and cord-cutting, MoffettNathanson has a rosier outlook for streamers.
In the “U.S. Video Consumer Spend: The Great Deflation Debate” study released today, video spend overall will see a dip — but that’s offset by growth in SVOD and vMVPDs.
Indeed, the researchers project OTT spend increasing to $29 billion by 2024.
Given the rise in streaming services, they peg SVOD and vMVPDs as accounting for around 36 percent of aggregate U.S. video spend by 2024. That’s more than double its current share.
Moreover, cord-cutting will continue to propel streaming services. MN predicts Netflix will add 9 million more domestic subs by 2024. It also sees a solid uptick from Hulu, Disney+, ESPN+ and HBO Max.
Indeed, Disney+ is expected to hit 53 million domestic subs by 2024, around 75 percent of Netflix’s U.S. subscriber base. Also, Disney is expected to push Hulu’s growth by expanding its content library. As of 2019, Amazon Prime Video accounts for 48 percent of streaming households.
And, as SVOD subs rise, so does revenue. The uptick on spending for them is projected to hit $38 billion by 2024, more than double its 2019 numbers at $16 billion.