The PwC Global Entertainment & Media Outlook: 2020-2024 published on Thursday suggests that with the closure of cinema halls and multiplexes due to the COVID-19 triggered lockdown since March, subscription video-on-demand revenues have exceeded box office revenues for the first time. As internet-connected devices proliferate, especially new smartphones and connected TVs, OTT video growth comes from both inside and outside the home. Subscription VOD will be the primary revenue generator, rising from $708 million in 2019 to $2.7 billion in 2024 at a 30.7 percent CAGR.
The emergence of new direct-to-consumer applications, local ‘bite-sized’ entertainment channels, and user-generated content (UGC) formats has led to the new at-home climate.
When SVOD income overtakes box office investment, a key turning point will be reached in 2020. This event highlights the pace at which customers have embraced OTT channels, the report said.
This means that, when some film studios opt to fast-track new releases to home video outlets, OTT is likely to benefit from the closing of cinemas. In the five southern states, which are a significant segment of box office collection revenues in the world, the trend of digital-first releases is also catching up.
In 2022, followed by mobile video consumption and social media, the mobile display would surpass wired internet ads. According to the latest report by PwC, games are expected to become the third-largest user of data by 2024, behind video and communications.
The report said that India is the fastest-growing OTT market at 28.6 percent CAGR; to become the sixth-largest market in 2024. India’s OTT market to overtake South Korea, Germany, and Australia and become the sixth-largest market in 2024.
India, having surpassed Taiwan in 2019, is now the sixth largest Internet ad market in the Asia Pacific.
Due to improved data affordability, modern mobile-first formats, ability to calculate, and strategic targeting (i.e. geolocation), mobile will continue to be the key revenue driver.
The continuing change in customer preferences continues to influence the TV advertisement model. Via a combination of subscriptions and ad-based models, conventional media such as newspapers invest heavily in their own streaming services and aim to monetize.