Digital video to flourish in 2015

DetailsJoseph O'Halloran | 02 April 2015

A rapidly growing pay-TV market and increasingly digital savvy and content hungry consumers will drive a resurgence in the video entertainment landscape in 2015 says Futuresource Consulting.

In the latest of its Video Insights reports highlighting latest market trends, challenges and opportunities across Australia, Italy, Russia, Turkey, UK and USA the analyst predicts that such growth will occur despite some markets continuing to be impacted by political and economic uncertainty across different markets.

"Within home entertainment, 2015 will represent the first year that digital revenue will outperform that of legacy packaged media in some countries," commented Futuresource senior market analyst David Sidebottom. "This is due to the rise in popularity of online video services such as Netflix, iTunes, Amazon and local operators Blinkbox, Okko, Presto, Stan and Chili at the same time as steady erosion of consumer demand for DVD and Blu-ray. The ability to access these premium on-demand services on a TV has also been a key catalyst to growth."

Indeed SVOD is expected to continue to drive premium online video viewing in many markets, with Netflix expected to continue to lead the charge with the recent launch in Australia and new launches in Italy and Japan planned for later in 2015. Sidebottom added that OTT and pay-TV will flourish throughout 2015 due to greater availability of services and growing penetration of connected hardware, further helped by the improving broadband infrastructure in most major markets.

Looking at specific areas of the entertainment market, Futuresource said that the packaged sell-through video market in 2015 will likely witness a marginally worse rate of decline in most countries when compared to 2014, as the continued steady uptake of digital video and the gradual shift in many consumers mentality from ownership, to access, continues. By contrast it also found that transactional digital video uptake remains patchy worldwide, and EST is starting to realise some of its potential in the USA and UK, although in other markets, the sector remains relatively insignificant when compared to packaged sell-through.