OTT SVOD revenues to reach nearly $8b in 2017
November 7, 2013 14.24 Europe/London By Broadband TV News Correspondent
MRG expects the OTT SVOD market to record significant growth worldwide in the coming years, reaching nearly US$8 billion on more than 120 million subscribers globally by 2017.
North America is the most developed market for OTT SVOD services and highly competitive with more than 25 OTT SVOD service providers as of 2013.
OTT SVOD subscriptions are estimated to have increased by more than 50% in 2012, reaching nearly 50 million.
North America is followed by Western Europe. In 2012, Western Europe accounted for 11% of the worldwide OTT SVOD market with 7 million subscriptions and annual revenue of US$575 million.
Asia, with the largest Internet population in the world, accounted for nearly 5 million OTT SVOD subscriptions in 2012 and US$255 million in revenue. While potential for SVOD in this region is enormous, the market is generally very price-sensitive making ad-supported models more attractive in some cases.
In 2012, Eastern Europe comprised 7% of the worldwide OTT SVOD market with more than 4 million subscribers and revenue of US$253 million. Eastern Europe consists of more domestic players as compared to international ones, owing to high demand for home grown content.
The OTT SVOD service markets in Latin America, Asia and Eastern Europe, collectively comprised 20% of worldwide OTT SVOD subscriptions in 2012. These regions are expected to record immense growth in the next five years, increasing their overall share significantly.
In 2012, the Middle East and Africa had a negligible share in the worldwide OTT SVOD market. Though the market is expected to grow in the coming years, its contribution to the worldwide OTT SVOD subscriptions will merely increase to 1% by 2017.
Eastern Europe, Latin America and Asia are emerging markets for OTT SVOD services and represent solid opportunities.