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Global TV revenue to reach €483.9bn in 2017

August 19, 2013 08.25 Europe/London By Robert Briel

vintage_tv-setWorldwide video and television revenues will increase from €392bn in 2012 to €483bn in 2017, according to iDate.

Although video consumption has never been stronger than today, global video market revenues slow down because of permanent decrease in physical video distribution revenues, while business models of traditional TV are subject to the pressure of video over-the-top OTT services, according to Florence Le Borgne of the French based research company.

To date, linear television will continue to generate nearly 91% of video market revenues. The market share of the video on demand gains momentum compared to the physical video with 7.0% and 2.1% of the total video market by value in 2017 and +49.6% and +150.5% respectively between 2012 and 2017.

Pay-TV revenue will grow by 22.7% between 2012 and 2017, or by an average 4.2% annually, to reach €210.2 billion in 2017.

Ad revenue will enjoy even stronger growth of 25.8% between 2012 and 2017, to reach €191.4 billion in 2017. Public financing/licensing fees will continue to increase significantly (+7.5% in 5 years) to reach more than €37 billion in 2017.

In this context, the number of TV households worldwide will reach 1.647 billion in 2017 (+9.9% in 5 years) and the number of digital TV households worldwide will come to 1.443 billion in 2017, which translates into 87.6% of TV households.

able will the remain the chief access channel (571.7 million households in 2017) but will gradually lose ground to satellite and IPTV which will account for 32.4% and 8.5% of TV households, respectively, at the end of 2017.

Despite the development of hybrid TV solutions, terrestrial TV will continue its decline and drop down to number three spot by 2017, with a roughly 24.4% share of the global market.

As of video hard copy sales, they will total €10.3 billion in 2017, they are a part of a continuous decline as the global market will have shrunk to half of what it was in 2012. Blu-ray will be the most common format, while the rental market will overtake the permanent sales market.

Meanwhile, video on demand (VoD) revenue will reach €34 billion in 2017, which is 150% more than in 2012

OTT video will continue to be the biggest earner, generating 74% of total revenue.

VoD will still be the dominant model on managed networks. It will generate €6.6 billion in 2017 versus €2.2 billion for subscription video on demand (S-VoD).

This analysis is an extract from iDate’s World TV & New Video Services Markets Status Report + Database.

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Filed Under: Newsline, Research Tagged With: global TV revenue, iDate Edited: 19 August 2013 08:27

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About Robert Briel

Arnhem-based Robert covers the Benelux, France, Germany, Austria and Switzerland as well as IPTV, web TV, connected TV and OTT. Email Robert at rbriel@broadbandtvnews.com.

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