Online TV & video revenues to soar

07.48 Europe/London, October 12, 2011 By Robert Briel

Global online TV and video revenues will reach $21.52 billion in 2016, a massive increase from the $3.48 billion recorded in 2010, according to the Online TV and Video Forecasts report from Digital TV Research.

Report author Simon Murray said: “The OTT television and video sector is on the brink of a huge take-off as the key players expand internationally, companies consolidate [with Hulu about to be sold to one of existing major players] and as new partnerships are announced on a daily basis.”
This impressive growth will be helped as more and more households watch more and more TV and video online. By 2016, 415 million homes in 40 countries will watch online television and video, up from 177 million in 2010.
The US will remain the dominant territory for online TV and video revenues. However, its share of total revenues will drop from 54% in 2010 (when the US recorded revenues of $1,868 million) to 36% in 2016 ($7,722 million). China’s online television and video revenues will surge from $50 million in 2010 to $1,380 million in 2016.
Online TV and video advertising has been the key driver in the OTT television and video sector, recording revenues of $2.18 billion in 2010. Rapid advertising expenditure growth will continue, to reach a global total of $9.98 billion in 2016. However, advertising’s share of total OTT revenues will fall from 63% in 2010 to 46% in 2016 as paid-for revenues skyrocket.
For this report, online TV and video advertising is defined in net terms (rate card prices less discounts, agency commissions and production costs). Furthermore, online TV and video advertising is calculated from digital video revenues (for the relevant sites) as well as display advertising featured on the relevant web pages.