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Global subscription OTT revenues to overtake cinema in 2019

Even sooner in US and UK according to Ampere Analysis

Global subscription OTT revenues will overtake cinema revenues in 2019, according to Ampere Analysis. 

The research found that OTT revenues will reach $46 billion in 2019, compared with just under $40 billion for box office.

US SVoD revenues surpassed theatrical revenues in 2017 and the UK is expected to follow suit by the end of 2018. The same is projected for China in 2019.

The analysis showed that the more expensive the cinema ticket, the lower the cinema attendance.

In nine out of 15 markets analysed (Australia, France, Germany, Japan, Netherlands, Sweden, Turkey, US and UK), the average price of a cinema ticket is higher than one month’s subscription to an SVoD service.

Toby Holleran, senior analyst at Ampere Analysis, said: “Our analysis of consumers in 15 markets reveals that although there are differences in the cost of cinema attendance by country, there’s clearly an appetite for content amongst some consumers whether that be on the big screen, or a smaller one. 

“The key for cinema is to understand that while SVoD subscribers are more avid cinema goers, this may not always be the case. Therefore, the shared experience of watching a film on the big screen must remain an enticing – and realistically priced – one.”