Analyst review: Facebook, Google face ad revenue losses & SVOD market predictions | Industry Trends


Facebook and Google Could Lose Over $44 Billion in Ad Revenue in 2020
A new report from Cowen & Co has predicted the coronavirus pandemic could wipe out more than $44 billion in global ad revenue for the tech giants Facebook and Google in 2020.

The companies face a major loss of income as digital advertising slows down.

According to the report, Google’s total net revenue is projected to be about $127.5 billion – down $28.6 billion.

Facebook’s ad revenue for 2020 is forecast at $67.8 billion – a decrease of $15.7 billion, Variety reported.

However, Facebook’s advertising business is projected to “bounce back” in 2021, growing 23% to $83 billion, the report suggests.

Disney valued over $100 billion
A Barclays report in January estimated the enterprise value of Disney’s core business, including its movie, networks and theme parks operations, at approximately $213 billion, with the direct-to-consumer operations worth nearly $108 billion.

The media giant is made up of three pillars, Disney+, ESPN+ and Hulu, which Disney took full control of in May last year.

Barclays also reported that Disney may look to additional distribution deals in order to keep the momentum going, of which the media empire has since achieved. Earlier this month, Disney+ signed a multi year deal with Sky.

India to be third largest SVOD market by 2020
According to the latest report by Futuresource, India will have the third most SVOD subscribers of any country worldwide.

The report reveals the rapid change across the Indian content landscape and predicts that the number of subscribers will reach 95 million people in 2023 service.

More affordable smartphones and cheaper mobile data with faster connection are cited to be the biggest factors contributing to SVOD growth in the region.

MENA to hit $3 billion SVOD revenue by 2025
SVOD revenues in MENA are set to reach $2.97 billion by 2025 according to a report by Digital TV Research.

This will be $2.1bn more or triple the total revenue in 2019. Netflix is predicted to account for 38% total of MENA SVOD subscribers by 2025, with its base doubling from 2019, followed by StarzPlay (23%) and Disney Plus (11%).

The report also predicted that Turkey would account for $908m in 2025, with Saudi Arabia claiming $563m and Israel $470m. 

Recession to cut 5 million Latam pay-TV subscribers
A Digital TV Research report forecasts Latin American pay-TV subscribers will continue to fall amid the recession the region is facing.

The research predicts 67 million pay TV subscribers by 2025, which is down from 72 million in 2017. Since 2017 the peak, numbers have steadily dropped.

Brazil has lost 3 million pay-TV subscribers from 2015 to 2019.



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