Despite the rapid uptake of Netflix and Amazon in the US, there will be a steep rise in the number of SVOD and OTT customers in North America in the next five years and a big uptick in the revenues generated by these services, according to new research.
Digital TV Research says that the 50.6 million US SVOD homes total at end-2014 represents a big increase on the 2010 number of 16.7 million, and makes North America the most mature OTT market in the world.
However, the research house adds that there is still plenty of growth to come, with 7.1 million new SVOD homes this year and the total climbing to 76.5 million by 2020.
That 2020 forecast means that by that point, over half of North American households and 65% of broadband-enabled homes have an SVOD service.
SVOD revenues will also increase sharply. This year SVOD revenues are expected to come in at US$13.2 billion and that figure will increase to US$20.5 billion by 2020, according to Digital TV Research.
Advertising on OTT sites will generate revenues of $6.0 billion in 2015, quadruple the $1.4 billion in 2010. Rapid advertising expenditure growth will continue, to reach $10.3 billion in 2020.