Online video to push Western Europe home video to €8.7bn by 2020Wednesday, May 17th, 2017
IHS Markit: Online Video Growth Will Drive Western Europe Consumer Spending to €8.7 billion by 2020
LONDON — IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions, expects total consumer spending on home video in Western Europe to increase with a CAGR of 3.5 percent per year, to reach €8.7 billion by 2020. The market demonstrated confident expansion over 2016 at 2.6 percent, reaching €7.9 billion. The home video sector is defined as being composed of physical videodisc, paid-for online video (electronic sell-through, or EST, and iVideo-on-Demand, or iVoD) and subscription online video.
The UK, Germany and France continue to be the three biggest markets for home video entertainment. Combined, these countries accounted for exactly three-quarters (75 percent) of transactional consumer spending on home entertainment video in 2016, and about half (52 percent) of subscription video spending. Subscription spending will continue to monetize markets where consumers historically demonstrate lower propensity to spend on transactional video.
IHS Markit’s forecasts state that physical disc spending will continue to decline, dropping by 47 percent over the next four years, to €1.96 billion. The online transactional video market will see moderate growth, being valued at €1.2 billion by 2020, a 23 percent increase. The spending on subscription online video will reach €5.5 billion in 2020, a 78 percent increase.
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