Western European OTT revenue tipped to generate $45bn in 2027

Western Europe OTT revenues by country (US$m)

Western European OTT TV episode and movie revenues will reach US$45bn in 2027, up from US$26bn in 2021, according to UK analysis firm Digital TV Research.

The biggest contribution will come from the UK, where OTT revenue will increase from US$6.1bn in 2021 to just under US$10bn in 2027. Germany comes in next, with OTT revenue expected to rise from US$4.5bn to US$8.1bn over the same period.

Behind Germany is France, where OTT revenue is forecast to grow from US$4.4bn in 2021 to US$7.5bn in 2027. In Italy, OTT revenue is expected to increase from US$2.1bn to US$4.2bn, while Spain will see a rise from US$1.8bn to US$3.4bn.

Other Western European countries combined will experience growth in OTT revenue from US$6.9bn in 2021 to US$12.2bn in 2027, according to Digital TV Research.

“The UK is the largest OTT revenue earner in the region. Its US$6bn provided 24% of the 2021 total. The UK’s US$10bn in 2027 will represent 22% of the region’s total – so other countries will grow faster,” the report said.

Simon Murray, principal analyst at Digital TV Research, added: “SVoD far exceeds any other revenue source for Western Europe. SVoD will increase by US$13bn between 2021 and 2027 to US$30bn. AVoD will add US$6bn to reach US$12bn.”

According to the report, SVoD subscriptions in Western Europe will reach 258 million by 2027, up from 164 million by end-2021. Four countries will provide two-thirds of the total, with Germany overtaking the UK in 2026.