While digital may be driving growth in the video market, TV spend – both from consumers and advertisers – still represents the largest amount of revenue.

That’s according to a new report by global research firm Strategy Analytics.

The report asserts that advertiser and consumer spend on TV and video will grow to $599 billion in 2022, from $490 billion in 2017.

According to the report, 90% of this growth will be driven by OTT video services – YouTube, Facebook, Google Play, Netflix and other online video platforms – which will double their consumer and ad revenues over the forecast period to $123 billion in 2022. The report defines “consumer and advertiser spend” as expenditure by brands (TV advertising, digital advertising and digital sell-through), as well as consumers (digital rental and subscription fees).

While TV advertising spend has remained relatively flat since 2016 and is predicted to remain as such (hitting just under $200 billion globally by 2022), traditional television revenues, which include advertising, cable, IPTV and satellite revenues, represent far more revenue than those from digital.

Michael Goodman, director of television and media strategies at Strategy Analytics, said in the report that despite OTT and video services being the driving force behind new revenues and growth, “traditional TV and video services should not despair too much, as they will continue to account for the majority of consumer and advertising spend for the foreseeable future.”

By 2022, when combining traditional TV advertising and consumer spend, the market will be worth $435 billion globally, according to Strategy Analytics. That represents an increase of $7 billion from 2017.

The largest market for TV and video is North America; it accounts for 38.7% of global consumer and ad spend in the mediums.

While Strategy Analytics acknowledged that consumer and advertiser spend on legacy pay TV services is either flat or declining in different parts of North America, some of the continued strength in television globally comes from China and India, where consumer spend on legacy pay TV services is growing significantly.

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