This is the latest installment in an ongoing series of quarterly video ecosystem overviews focusing on monetization, audience, platforms and content. The goal of each report is to provide a summary of key recent developments.

• Digital video monetization is growing along both of its principal revenue streams: advertising and subscriptions. Video ad spending will top $17 billion this year, while subscription fees on the major services are expected to best their 2017 total of nearly $15 billion.
• Time spent with media is also bifurcating, with digital video platforms catching growing amounts of viewing time while TV trends downward.
• Two standalone sports video platforms launched in Q2 2018, providing further evidence that traditional pay TV providers are losing their grip on the type of content that once kept viewers attached to cable and satellite packages.
• Viewers are more interested in quality than quantity when it comes to channel bundles. They want access to a relatively small, but customized, selection of networks, as opposed to an all-you-can-eat buffet.

WHAT’S IN THIS REPORT? This report covers key events in the digital video industry based on data, trends and business activity in Q2 2018.

KEY STAT: US digital video ad spending will climb through 2022, while TV will track downward. This differs from our previous forecast in mid-2017. We now anticipate faster-than-expected increases for video, while TV will see annual decreases (except for 2020) instead of slight growth.