PwC: OTT Revenue Growth to Slow

Following the pandemic-driven boosts of 35.4 percent in 2020 and 22.8 percent last year, OTT video revenue growth is expected to slow to a compound annual growth rate (CAGR) of 7.6 percent through 2026, PwC reveals, with revenues rising to $114.1 billion.

The global entertainment and media market will be worth almost $3 trillion in revenues in 2026, PwC says in its Global Entertainment & Media Outlook 2022–2026, up from $2.5 trillion this year. PwC expects a 4.6 percent CAGR between 2021 and 2026.

“A vision of what the dynamic E&M complex will be like in 2026 is coming into focus,” PwC says. “A $2.9 trillion industry that is more digital, more mobile, more pitched at media that attract the young, more evenly distributed around the globe and more dependent on advertising in all its forms.”

Amid continued competition with streaming services, traditional TV revenues will contract at 0.8 percent CAGR, falling to $222.1 billion in 2026.

PwC projects that ad revenues will grow at a 6.6 percent CAGR through 2026, led by digital.