Rocketing OTT market to break $50BN barrier by 2020

DetailsJoseph O'Halloran | 15 June 2015

2015 has undoubtedly been the year of over-the-top (OTT), and a report from Digital TV Research predicts that the good times for OTT will roll on for the next five years at least.

The analyst's Global OTT TV & Video Forecasts report predicts that global OTT TV and video revenues in 64 key countries will total $51.1 billion in 2020, almost double the amount expected by the end of this year. Despite OTT being a true worldwide phenomenon, and with Asian subs set to show especially robust growth, the US is predicted to be the dominant territory for over-the-top services with 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, propelling the country to fourth place in the world rankings. OTT revenues will exceed $1 billion in 11 countries by 2020.

In what may be termed the Netflix effect, Digital TV Research says that subscription video-on-demand (SVOD) will become the largest revenue source in 2020, overtaking OTT advertising which itself is forecast to rise by nearly $12 billion, adding $14 billion between 2014 and 2020, driven by an explosion in homes from 117 million by the end of 2015 to 249 million five years later. SVOD revenues are set to from $7.6 billion in 2014 and onto $21.6 billion in 2020. The US, with 70 million SVOD homes, is expected to generate $6.516 billion by 2020. The analyst also believes that Netflix's US subs alone will reach 43.54 million by end-2015, giving a global total of 69.90 million.

Commenting on the report which he authored, and the SVOD spike in particular, Digital TV Research principal analyst Simon Murray 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 galvanised local players into action - creating a whirlwind of promotional activity."