Don’t expect streaming revenue to maintain its rapid growth rate –

According to PwC’s annual Global Entertainment & Media Outlook, the US market, which includes streaming services, is expected to slow down over the next five years.

In 2021, the market for the latest video services related to Internet transmission providers such as Netflix, Disney + and HBO Max, as well as platforms that allow users to buy the content contained therein, grew by 19.9 percent in comparison with last year. According to a report released on Monday. This followed massive growth in 2020, when the market jumped 35.6% year-on-year.

Growth is expected to slow to an average of 6.8% over the next five years as consumers increasingly opt for streaming subscriptions, while inflation and economic concerns become part of personal spending habits.

“The dollars, to some extent, are starting to move,” said CJ Bangah, author of the report. “And there are only so many hours in the day and only so many subscriptions that users will have.”

This is due to increased competition and spending among flow providers. Disney will spend $33 billion on content in 2022, while Netflix will spend around $17 billion. Streaming companies need to focus more on taking those investments forward, a trend already started at Netflix and promised at HBO Max, Bangah says, as each must deliver “immense value” to customers before they watch their content. In the game.

To combat customer frustration with the number of subscription services, the space is likely to see more mergers or partnerships between existing streamers, as well as more companies adapting to Amazon’s model, where a single platform expands to deliver music, podcasts and podcasts. More and you can better individualize the media consumption experience based on the customer.

The United States remains the largest OTT market in the world, generating $29 billion in revenue in 2021, expanding its lead over China, then the largest market. The total US dollar amount is expected to increase to $40.4 billion by the end of 2026, demand for the video streaming segment will increase to $33.6 billion in the same year. Meanwhile, the TVOD market is expected to shrink or require video transactions as movie studios return to more standard cinema windows.

A further increase in subscribers is expected in their late teens, who are now focused on short-form videos on platforms like TikTok, but suggest switching to longer-form content. Platforms may also expand globally as more countries gain greater internet access.

This story appeared in the June 22 issue. the hollywood reporter Daily. Click here to subscribe.