According to recently released reports from Omdia, free ad-supported streaming TV channels have projected revenues of $6.3 billion for 2023. The biggest contender by far is the United States, comprising approximately 80 percent of the total market revenue, although their foreign competitors are stepping up their streaming game. But will it be enough to overthrow the reigning streaming champs?
The U.K., Canada, and Australia are forecasting massive expansions rolling out during the next four years. By 2027, growth opportunities for ad-supported streaming channels outside the United States are estimated to be at least $1.6 billion.
“Although three of the five-largest FAST markets are English-speaking nations, Canada, Germany, and Brazil, in third, fourth, and fifth place, respectively, will offer mainstream FAST opportunities for non-English content,” – Maria Rua Aguete, senior director at Omdia.
Between 2019 and 2022, Omdia released reports stating that ad-supported streaming channels’ revenue grew 20 times and shows no signs of slowing down. By 2027, growth is expected to reach, if not exceed, a combined $12 billion international ad-supported streaming market.
Omdia estimates increases in international revenues projected by 2027, breaking down expectations by the current top-performing countries:
- United States: $10+ billion
- United Kingdom: $500 million
- Canada: $300 million
- Germany: $200 million
- Brazil: $100 million
- Mexico: $93 million
While Omdia’s research shows incredible growth expectations for a growing number of international streaming services, combined they still do not come close to the ad revenue generated by the United States alone. Brazil’s revenue projections represent approximately half of all Latin American ad-streaming markets, bringing the total net worth to $207 million in 2027.
Ad-supported streaming services are a budget-friendly option to other paid subscription platforms. Other than a more limited catalog of content, the only difference is occasional ads played while streaming. It’s a way for consumers to both cut cable costs and numerous streaming platform subscription fees while still being able to fully enjoy their favorite films and series.