The PwC Global Entertainment & Media Outlook: 2020-2024 report stated that for the first time, subscription video on demand revenues have surpassed box office revenues with the closure of cinema halls and multiplexes due to the COVID-19 induced lockdown since March.
OTT video growth is coming from both inside and outside the home as internet-connected devices proliferate, notably new smartphones and connected TVs. Subscription VOD will be the prime driver of revenue, increasing at a 30.7 percent CAGR from US$708 million in 2019 to US$2.7 billion in 2024.
The new at-home environment has led to the rise of new direct-to-consumer apps, local ‘bite-sized’ entertainment platforms, and user-generated content (UGC) formats.
A key tipping point will be reached in 2020 when SVOD revenue will overtake box office spend. This event highlights the speed at which OTT platforms have been accepted by consumers, the report added.
The report further stated 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.