OTT TV & video revenues to rocket to $51 billion

Monday, June 15th, 2015
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Global OTT TV and video revenues [covering 64 countries] will reach $51.1 billion in 2020; a massive increase from the $4.2 billion recorded in 2010 and the $26.0 billion expected in 2015.

According to the Global OTT TV & Video Forecasts report from Digital TV Research, the US will remain the dominant territory – with OTT TV and video revenues rising by $16.6 billion between 2010 and 2020 to $19.1 billion. China’s OTT TV and video revenues will rocket from just $40 million in 2010 to $2,815 million in 2020 – to push China up to fourth place in the world rankings. OTT revenues will exceed $1 billion in 11 countries by 2020.

Subscription, Rental/PPVV, Download-To-Own (DTO), Advertising
Source: Digital TV Research

SVOD will become the largest revenue source in 2020, overtaking OTT advertising. SVOD will add $14 billion between 2014 and 2020, with advertising on OTT sites up by nearly $12 billion.

The report forecasts 249 million SVOD [subscription video on demand] homes by 2020, up from 20 million in 2010 and an expected 117 million by end-2015. The US will contribute 70 million SVOD homes to the 2020 total.

SVOD revenues will soar from $1.0 billion in 2010 to $7.6 billion in 2014 and onto $21.6 billion in 2020. The US generated SVOD revenues of $753 million in 2010. Its revenues will climb by 765% to $6,516 million in 2020.

Simon Murray, Principal Analyst at Digital TV Research, said: “SVOD has developed even faster than we expected in our last edition a year ago. Some of this growth was spurred by Netflix’s aim to establish operations in 200 countries by end-2016. Not only has the launch of Netflix boosted each market, but the anticipation of its launch has galvanized local players into action – creating a whirlwind of promotional activity.”

Netflix’s international operations are growing fast. Digital TV Research expects its international paying subscribers to grow to 26.36 million by end-2015. We also expect that its US paying SVOD subs will reach 43.54 million by end-2015, giving a global total of 69.90 million.