Boom forecast for global online TV and video

October 30, 2012 17.02 Europe/London By Broadband TV News Correspondent

Global online TV and video revenues will reach $28.72 billion in 2017, a massive increase from the $3.79 billion recorded in 2010 and the $11.14 billion expected in 2012, according to a new report from Digital TV Research.

The Online TV and Video Forecasts report (which covers fixed broadband developments – not smartphones or tablets) explains that the over-the-top TV sector is on the brink of a huge take-off as the key players expand globally, companies consolidate and as new partnerships are announced on a daily basis.

By 2017, 480 million homes in 40 countries will watch online television and video, up from 182 million in 2010. By 2017, 64.6% of the world’s 745 million fixed broadband homes will view television and video online, up from 33.5% of the 473 million fixed broadband total in 2010.

Online TV and video advertising is the key driver in the OTT sector, recording revenues of $6.0 billion in 2012, up from $2.4 billion in 2010. Rapid advertising expenditure growth will continue, to reach a global total of $14.7 billion in 2017. However, advertising’s share of total OTT revenues will fall from 65% in 2010 to 51% in 2017.

The US will remain the dominant territory for online TV and video revenues. However, its share of total revenues will drop from 53% in 2010 (when the US recorded revenues of $2,001 million) to 38% in 2017 ($10,952 million). China’s online television and video revenues will rocket from $49 million in 2010 to $2,057 million in 2017 (just ahead of Japan to take second place).