OTT revenues to rocket to $42 billion by 2020

Global online TV and video revenues (over fixed broadband networks for 51 countries) will reach $42.34 billion in 2020; up from $3.96 billion recorded in 2010 and the $19.03 billion expected in 2014, according to a new report from Digital TV Research.

The US will remain the dominant OTT TV territory for online TV and video revenues, according to the Global Online TV & Video Revenue Forecasts report. However, its share of total revenues will drop from 59% in 2010 (when the US recorded revenues of $2,326 million) to 37% in 2020 ($15,527 million) as the international markets catch up. China’s online television and video revenues will soar from just $37 million in 2010 to $3,033 million in 2020 – to push China up to third place in the world rankings (with Japan in second place).

Online TV and video advertising has been the key driver for the OTT sector, with revenues of $8.3 billion expected in 2014, up from $2.4 billion in 2010. Rapid advertising expenditure growth will continue, to reach a global total of $18.1 billion in 2020.

Online television and video subscription revenues [SVOD] will climb from $1.06 billion in 2010 to $7.65 billion in 2014 and onto $16.77 billion in 2020. This means that SVOD will contribute 40% of total OTT revenues in 2020, up from 27% in 2010.

The US generated online TV and video subscription revenues of $793 million in 2010, or 75% of the global total. Although its revenues will climb by 667% to $6,086 million, the US will only account for 36% of the 2020 total.
Online TV and video rental/pay-per-view revenues will expand rapidly, climbing from $197 million in 2010 to $2,800 million in 2020. Download-to-own revenues are forecast to be $4,641 million in 2020, up from $332 million in 2010.