Tuesday, January 16, 2018
Home / Analysis / Ovum: FANG to Account for Majority of U.S. TV & Video Revenue Growth

Ovum: FANG to Account for Majority of U.S. TV & Video Revenue Growth


ADVERTISEMENT

In the U.S., Facebook, Amazon, Netflix and Google (FANG) are expected to take nearly two-thirds of all new TV and video revenue in 2018, according to forecasts by Ovum.

The gains for FANG will be due partly to the saturation of traditional TV in the U.S., but also to their growing domination of the OTT video market. Amazon and Netflix are forecast to attract 69 percent of OTT subscription revenue, while Google and Facebook will garner 45 percent of OTT in-stream video advertising spend.

Ovum predicts that Netflix, Amazon Video, YouTube and other online-only services will account for 18 percent of total paid and ad-supported TV and video revenues next year and 60 percent of growth. In the U.S., OTT will take a whopping 98 percent of growth.

It is also forecast that Amazon will generate more revenue from OTT video than Netflix in the U.S. in 2018. Amazon is expected to attract $5.8 billion in video-related revenue in the U.S. in 2018, through its growing array of ways to pay for video—subscriptions, digital rentals, electronic sell-through and bundles of third-party TV apps. Netflix’s subscription-only model will generate $5.3 billion. “Arguably, the e-commerce giant is ‘cheating,'” said Ovum, as the firm’s estimates count fees from Amazon’s ever-growing Prime bundle. “But maybe that’s the point,” it said. “Rules are meant to be broken and Amazon is the most daring offender.”



About Kristin Brzoznowski

Kristin Brzoznowski is the executive editor of World Screen. She can be reached at kbrzoznowski@worldscreen.com.

ALSO READ

TiVo Files New Patent Lawsuits Against Comcast

TiVo has filed new patent lawsuits against Comcast Corporation, alleging that the X1 platform infringes technology invented and patented by Rovi.