Online video to drive Western Europe home video spend to €8.7BN by 2020 | Media Analysis | Business
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onlinevideo 19may2017Research from IHS Markit has revealed a steadily growing home video market in Western Europe, rising at a CAGR of 3.5% per year to reach €8.7 billion in the next three years.

IHS Markit 19may2017The analyst defines the home video sector as comprising physical video disc, paid-for online video (electronic sell-through and video-on-demand) and subscription online video. The forecast growth compares well to the situation during 2016 when the market demonstrated expansion of 2.6%, reaching €7.9 billion.

The UK, Germany and France accounted for exactly three-quarters of transactional consumer spending on home entertainment video in 2016, and just over half of subscription video spending. IHS Markit predicts that subscription spending will continue to monetise markets where consumers historically demonstrate lower propensity to spend on transactional video.

By contrast, IHS Markit forecasts state that physical disc spending will continue to decline, dropping by 47% over the next four years, to €1.96 billion. The online transactional video market is predicted to see moderate growth, being valued at €1.2 billion by 2020, a 23% increase. Spending on subscription online video is set to reach €5.5 billion in 2020, a 78% increase.