Annual online television and video revenues in Western Europe are forecast to more than double to $23 billion over the next five years. The United Kingdom accounts for 30% of them. Subscription services will make up more than half of the total, with subscriber numbers predicted to almost double to just under 100 million, half of them attributable to Netflix.

Western European online television episode and movie revenues will reach $23.02 billion in 2023, which is more than double the $9.84 billion recorded in 2017. Revenues for 18 countries are expected to climb by $2.63 billion in 2018 alone.

Subscription services will almost triple in revenues, from $4.44 billion in 2017 to $12.47 billion in 2023, increasing their share of online video revenues from 45% to 54%. The United Kingdom will generate the most revenue, equivalent to those of Germany and France combined.

Western Europe online video revenue 2017-2023. Source: Digital TV Research.

The number of online video subscribers will almost double from 50 million at the end of 2017 to almost 100 million by 2023. Nearly 15 million subscribers will be added in 2018 alone, with 11 million more expected in 2019.

Netflix will remain the largest subscription service by some way, with nearly 50 million paying subscribers in 2023, representing half the total for the region. Amazon is forecast to have 22 million video subscribers.

Simon Murray, Principal Analyst at Digital TV Research, said: “The UK is the largest OTT revenue earner in the region by some distance. Its $2.98 billion generated 30% of the 2017 total. The UK’s $6.80 billion in 2023 will represent a similar proportion.”

Services funded by advertising will double revenues, from $3.31 billion in 2017 to $6.94 billion in 2023. Online retail and rental services will increase revenues to $2.16 and $1.45 billion respectively.

The Western Europe OTT TV and Video Forecasts report is available from Digital TV Research.