The number of homes in the Asia Pacific region using subscription video-on-demand services is due to quadruple from 17.21 million in 2014 to 68.83 million in 2020, according to new research.
The Digital TV Research forecast claims that by 2020, 7.7% of the region’s TV households will subscribe to an SVOD package, up from just 0.2% by the end of 2014.
Japan will remain the largest SVOD country with 20.47 million users in 2020, while China is tipped to overtake South Korea to become the second largest SVOD market in the region with 12.27 million users, compared to South Korea’s 10.19 million.
“SVOD will become the region’s largest OTT revenue source in 2018. SVOD revenues will increase from US$1.032 billion in 2014 and to US$4.763 billion in 2020. Japan will remain the SVOD revenue leader by some distance, with second-placed South Korea generating less than half its revenues by 2020,” according to the report.
Digital TV Research claims that total OTT TV and video revenues in the Asia Pacific region will climb from US$604 million in 2010 to an expected US$3.63 billion in 2015 and US$11.29 billion in 2020.
Advertising on OTT sites in Asia Pacific will account for US$4.35 billion by 2020, up from US$1.61 billion in 2014, while download-to-own revenues are forecast to be US$1.45 billion in 2020, up from US$662 million in 2014, according to the research. Pay per-view revenues for OTT TV and video rental is tipped to expand rapidly from US$503 million in 2014 to US$1.16 billion in 2020.