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State of the Screens

PwC: OTT Video Revenue to Climb to $30.6B in 2022

By June 20, 2018No Comments

Revenue from advertising/subscriptions for OTT:
2017 — $20.1B (↑ 15%)
2) 2018 — $22.6B (↑ 12%)
3) 2022 — $30.6B (↑ 9% YoY)

% change in OTT advertising according to Innovid:
# of ad impressions — ↑ 178%
# of advertisers — ↑ 30%

Flashback #1: Reaching the Elusive OTT Consumer

Wi-fi users that watched OTT content in February 2018 (% of total):
1) Watched OTT content — 59M (63%)
2) Did not watch OTT content — 35M (37%)

Flashback #2: Connected TV increases usage 75% from 2016 to 2017

Share of addressable advertising on TV according to Magna Global:
1) Connected TV — $1.4B (63%)
2) Linear/VOD — $815M (37%)

What is driving this change? Time spent with digital will pass TV globally in 2019 and domestically by 2020 according to Zenith.

Minutes/day in 2019 (global):
Internet — 170.6
TV — 170.3

Minutes/day in 2020 (U.S.):
Internet — 274.0
TV — 266.2

More #1: PwC: TV Networks Evolve As Buyers And Viewers Demand A More Digital Experience

More #2: Tubi TV Starts Streaming Some of Hulu’s Catalog for Free on Web and Mobile

More #3: Facebook has failed to build a business for publishers. Now it’s trying again with news programming.

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.