Streaming subscriptions to grow in 2023, online ad spending to lead all sectors, says Omdia

In 2022, in the total of online video subscription services that Omdia tracks, more than 171 million subscribers were added. Furthermore, the subscriber count will grow by 143 million in 2023, Omdia forecasts.

The full forecast, which runs through 2027, would result in an additional 500 million subscribers flocking to the platforms over the next five years.

This was the bullish implication of an Omdia report, presented by senior research director Maria Rua Aguete on Tuesday at Miami’s Content Americas.

The forecast for 2023 is half the lockdown-dominated peak increase of 2020, which saw an additional 280 million subscribers. That year is proving to be an understandable anomaly. The 143 million figure for 2023 is perhaps better compared to the 2017-2019 period, which averaged 175 million in year-on-year growth, Rua Aguete said. Variety.

“10% of the additional net subscribers came from Latin America, this will represent 14% in 2023”, which would be equivalent to 18.5 million additional subscribers, according to the analysis presented by Rua Aguete. It suggests a territory at a different stage of growth, helped along by a huge increase in Latin American content now being produced by major platforms.

Omdia’s presentation shows that 2022 had 127 original Latin American productions broadcast on all platforms. This compares favorably with 60 in 2019, 73 in 2020, and 70 in 2021. Sub leads include titles like “Who Killed Sara?”

Maria Rua Aguete

What about advertising?

“2023 will be the year that online video advertising will surpass all other media segments with revenue of $221 billion.” Rua Aguete said, adding: “It will be the number one revenue-generating segment in all media.”

This prediction is likely to increase scrutiny of the measurable effectiveness of ads in the industry. YouTube is the #1 video service in terms of monthly users in the under and over 35 age groups, in the US, Mexico and Brazil.

TikTok surpasses Netflix to No. 2 for US Hispanics and Mexicans under 35. It also appears in the Top 10 for 35+, proving that platforms beyond a certain scale have sizable user bases beyond their core demographic. Delving into the top video services for the US Hispanic population and the broader US population, is Tubi’s surprise appearance for Hispanic audiences. This is explained by the large catalog in Spanish that has grown, representing 5% of its catalogues. Targeting a population of over 60 million in the US, Spanish-language catalogs are likely to continue to grow for years to come.

The presentation ended with an overview of the FAST (Free Ad Supported Television) sector. It’s an unwieldy vertical with over 1,500 FAST channels in the US alone, but it’s clear there’s a bullish mood growing revenue from last year’s $4 billion to over $12 billion. million in the next five years. For the Latin American market, Rua Aguete forecast that “Brazil will reach revenues of $100 million by 2027, which represents around half of the total Latam FAST market”.

One last word on password sharing. Between 35% and 50% of us are willing to share the passwords of our platforms. Netflix’s previous ambivalence to this has changed, and the crackdown is set to begin. It will be fascinating to see how this is reflected in the numbers and how the competitors respond.

Content Americas concludes on January 26.

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