More than 10% of the global population will use a subscription over-the-top (OTT) video service at least once a month in 2018, according to forecasts from eMarketer.
Nearly 765 million people worldwide are tuning in to watch content on platforms such as Netflix and Amazon Prime, with the global OTT subscription market expected to grow by 24.0% this year.
The research attributes the growth to increasing internet penetration, faster internet speeds and an overall shift to consuming entertainment online.
This follows Zenith’s Online Video Forecast, which revealed global consumers currently spend 67 minutes a day watching online video.
It was also found that Netflix users account for nearly 44% of the global OTT subscription video users, led by the US where eMarketer predicts 13% of US households will cut cable subscriptions in 2018 in favour of OTT subscriptions.
Australia has the highest Netflix usage in Asia Pacific, however, the service is also popular in Nordic countries and Germany. However, it has failed to attract big audiences in France, due to French laws that restrict films appearing on streaming services for three years after their release.
Shelleen Shum, forecasting director, eMarketer, said, “Netflix is banking on an aggressive strategy to grow its international business. Plans to beef up local content and deals with telcos to include Netflix in unlimited streaming packages will help growth remain strong for the next two years. Amazon Prime Video, which extended its offering to many international markets in late 2016, will also be a strong competitor for Netflix in the coming years.”