Global over-the-top TV (OTT) revenues will more than double between 2016 and 2022, driven by the success of subscription video-on-demand (SVOD), according to a new study.
Digital TV Research claims that online TV episode and movie rentals for the 138 countries covered in its report will climb from US$37 billion in 2016 to US$83 billion in 2022, with US$9 billion added in 2017 alone.
Fuelled by the success of services like Netflix (pictured), SVOD became the largest OTT revenue source in 2013 and is tipped to generate half of over-the-top revenues by 2022, having added US$24 billion in revenues between 2016 and 2022.
In 2022, SVOD is expected to generate revenue of US$41.2 billion, compared to US$29.0 billion for advertising-supported VOD, US$8.1 billion for download-to-own and electronic sell-through, and US$5.2 billion for rental.
“OTT revenues will exceed US$1 billion in 14 countries by 2022 – double the count at the end of 2017,” according to the report. “The top five nations will command two-thirds of global revenues.”
The top five countries by online TV and video revenues are expected to remain the same in 2022 as they are in 2017 – with the US leading the market, followed by China, Japan, the United Kingdom and then Germany.
“The US will remain the dominant territory for online TV and video revenues by some distance. However, the US share of the global market will fall from 51% in 2016 to 40% in 2022,” the report noted.
“Contributing half the Asia Pacific total, China will add a further $7.6 billion, with its total revenues reaching US$12 billion in 2022.”
Overall, the top five countries are expected to generate the following online and TV revenue in 2022: US US$33.1 billion; China US$12.2 billion; Japan US$4.4 billion; UK US$4.2 billion; and Germany US$2.3 billion.