June 19, 2023
The U.S. transactional VOD movie market is set to return to growth in 2023 after two years of revenue contraction in the wake of a revenue surge in 2020, fueled by the pandemic-induced home entertainment boom during lockdown conditions, according to new data from PricewaterhouseCoopers.
The global business consultant said the TVOD market would increase at a 2% compound annual growth rate to $6.2 billion in revenue in 2027, from almost $5.7 billion in 2022.
TVOD revenue, which declined 4.4% in 2022, is projected to reach a peak growth of 3.2% in 2024, before falling back to 1.2% growth year-on-year in 2027. At the same time, the TVOD market will continue to lose market share to AVOD and SVOD, falling from 11.5% of total U.S. OTT revenue in 2022 to 8.3% in 2027.
While TVOD remains a relative small market compared to subscription VOD and ad-supported VOD, PwC said it is worth noting that by the end of the forecast period, TVOD would still be large enough to rank as the fourth-largest global market by total over-the-top video revenue.