Rocketing OTT market to be worth $42BN by 2020
| 24 September 2014
A new report from Digital TV Research Global is predicting that online TV and video revenues over fixed broadband networks for 51 countries will reach $42.34 billion in 2020, more than double that reached at the end of 2014.
The analyst's Global Online TV & Video Revenue Forecasts report found that the key driver for the over the top (OTT) sector was online TV and video advertising with revenues of $8.3 billion expected in 2014, up from $2.4 billion in 2010. Such rapid advertising expenditure growth is expected to continue until 2020, reaching $18.1 billion.
By contrast, online television and video subscription revenues (SVOD) from services such as Netflix are set to climb to $7.65 billion by the end 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. 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.
Regionally the US will remain the dominant OTT TV territory for online TV and video revenues and Digital TV Research calculated that the country generated online TV and video subscription revenues of $793 million in 2010, or 75% of the global total. Yet though US revenues will likely climb by 667% to $6.086 billion, the US will only account for 36% of the 2020 total. In addition its share of total revenues is forecast to drop from 59% in 2010, with recorded revenues of $2,326 million, to 37% in 2020 ($15.527 million) as the international markets catch up. Hot on the heels of the US will be China where online television and video revenues are predicted to soar from $37 million in 2010 to $3.033 billion in 2020