ABI Research: Online Video Market to Hit $56 billion by 2019

SCOTTSDALE: While the revenue potential for short-form video is growing, TV and movies still drive the online video market, according to a new report from ABI Research.

The revenue potential for short-form video is expected to reach nearly $13 billion by 2019, with a six-year compound annual growth rate (CAGR) of 18.5 percent. However, even stronger revenue growth opportunities are expected for mid- and long-form content, thanks to OTT services such as Netflix and Hulu. This type of content typically generates more revenue per play, according to ABI.

Overall, the online video market is expected to exceed $56 billion by 2019, with a six-year CAGR of 23.1 percent.

Sam Rosen, practice director of ABI Research, commented, “As the overall online video market evolves, we anticipate the value for short-form video will rise in kind. Multichannel networks (MCNs) that work with content contributors and advertising agencies targeting services like YouTube are finding suitors and partners among some of the largest industry players in video. While much of this is linked to preparations for the future, these are aggressive steps forward that could help define the what, how, when and where we watch content.”

Michael Inouye, a senior analyst at the company, added, “Subscription services such as Netflix continue to headline the market, but EST in North America is starting to gain momentum. While initiatives like UltraViolet continue to make progress, many still view the market from a service-centric point of view, leaving opportunities for companies to try differentiation strategies to win consumers. The landscape for video is shifting, but so far it continues to move at a steady pace, rather than in seismic shifts.”