As more and more viewers move away from traditional TV packages and choose streaming services, people’s investment in video subscription fees and which companies are benefiting from changes in consumer viewing patterns are getting more and more interested. In December 2020, eMarketer forecasted video subscription revenue for the first time. eMarketer defines video subscription revenue as including revenue from video service usage fees charged regularly. This includes revenue from digital video and pay-TV services, excluding advertising and pay-per-view revenue.
When eMarketer divides US OTT subscription revenue by company, Netflix, Disney and YouTube are the biggest beneficiaries. In 2021, only 1/3 (30.8%) of US OTT subscription revenue will go to Netflix. Disney will account for 1/4 (25.9%) of OTT subscription revenue, and YouTube will account for 13.2%.
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Netflix’s share of total OTT subscription revenue is declining, but this is due to increased competition and market growth, rather than a decline in Netflix’s user base. Netflix has achieved brilliant results in 2020, and North American users continue to increase, although the market has become saturated. eMarketer predicts that Netflix’s subscription revenue in the United States will increase from $10.64 billion in 2020 to $11.76 billion in 2021.
In terms of OTT subscription revenue, the second-ranked YouTube and Disney charge subscription fees in a variety of ways. Unlike Netflix, YouTube and Disney each operate a virtual multichannel video program distributor, namely vMVPD (YouTube TV and Hulu+Live TV, respectively), which is much more expensive than on-demand streaming media like Netflix. Although compared with the most popular streaming media products, the number of users of vMVPD is still very low, but the high fees of vMVPD have a great impact on the subscription revenue of these companies.
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