OTT revenues to reach US$42 billion by 2020

Online TV and video revenues from fixed broadband networks will more than double in the next six years, reaching US$42.34 billion globally in 2020, according to Digital TV Research.

The new report, which covers 51 countries, estimates that the fixed OTT video revenue figure will climb from just US$3.96 billion in 2010 and an expected US$19.03 billion in 2014.

The research claims that online TV and video advertising, which has been “the key driver for the OTT sector,” will continue to see rapid growth – climbing from US$2.4 billion in 2010 to US$8.3 billion in 2014 and US$18.1 billion in 2020.

SVOD revenues are also tipped to continue to rise fromUS$1.06 billion in 2010 to $7.65 billion in 2014 and US$16.77 billion in 2020.
“This means that SVOD will contribute 40% of total OTT revenues in 2020, up from 27% in 2010,” according to Digital TV Research.

Rental and pay-per-view revenues will expand from US$197 million in 2010 to US$2.8 billion in 2020, while download-to-own revenues are forecast to climb from US$332 billion in 2010 to US$4.64 million in 2020.

Overall, the US will remain the dominant territory foronline TV and video revenues, but its share of revenues will drop from 59% in 2010 (US$2.3 million) to 37% in 2020 (US$15.5 million) as international markets catch up, said the research.

“China’s online television and video revenues will soar from just US$37 million in 2010 to US$3.03 billion in 2020 – to push China up to third place in the world rankings, with Japan in second place,” said Digital TV Research.