OTT set to rocket in Asia Pac

Revenues from OTT services will top US$10 billion in the Asia Pacific by 2020 as broadband penetration increases in the region and key players expand internationally, according to new research.

Digital TV Research’s 2020 revenue forecast of US$10.2 billion is significant given OTT services in Asia Pacific generated just US$500 million in 2010.

New partnerships and launches are being launched on an almost daily basis in the region, Digital TV Research noted in its Asia Pacific Online TV & Video Forecasts report, which tracks developments across 14 key Asia Pac territories.

An explosion in online video advertising is driving the growth, the research firm noted, with revenues of $1.69 billion expected in 2014, up from $0.33 billion in 2010.

Advertising will make up an estimated US$4.6 billion of the 2020 US$10.2 billion total and subscription revenue US$3.5 billion. OTT subs revenue this year is expected to come in at US$1.3 billion.

Combined rental and download-to-own revenues will jump from US$628 million this year to US$2.1 billion by 2020.

One OTT player that has yet to move into Asia is Netflix. The streaming service is tipped to launch in Australia next year with about 200,000 Australians already thought to be accessing the service using geo-blocking services. However, the US-listed company is not understood to be lining up any other launches in the region.

Digital TV Research CEO Simon Murray told TBI that Netflix’s restricted Asian ambitions are linked in part to payment collection issues.

“The problem in some territories is subscriptions – getting money from households that may not have a bank account or credit card,” Murray said.