The average annual spend per US household on video services will fall by 8% by 2027, according to Ampere.
The company’s latest forecasts indicate 2023 will become known as the year when per-household spending on subscription video-on-demand (SVOD) services in the United States could no longer compensate for the continued decline in pay TV.
At the same time, in Western Europe, where consumer spend on pay TV is more stable, increasing demand for SVOD services will drive an 11% increase in overall household expenditure on video content by 2027.
Among European territories, Norway’s per household spend on video is set to overtake the United States in 2025, the first Western market to do so. The UK, behind in third place is anticipating a small rise to an annual $824 million.
Ampere says annual bills for video content peaked at $1,146 per household in the United States in 2022 thanks to a post-pandemic bounce-back in theatrical expenditure and an 18% year-on-year increase in SVOD outlay to $374 per household per year. This year, however, we will see US SVOD revenue growth slowing, hindered by market maturity and macroeconomic pressures. The added impact of cord-cutting will see yearly pay TV investment per average US household fall below $650 for the first time since 2006.
