The Asia Pacific will contribute US$12.65 billion in extra over-the-top TV and video revenues between 2015 and 2021, from the total global increase of $35.37 billion, according to Digital TV Research.
Dig TV res 19 JUly 2016Western Europe will provide $8.25 billion in extra OTT revenues, North America $9 billion, and in Latin America revenues will nearly triple. Even greater growth is expected in Eastern Europe and the Middle East & Africa, say researchers.
In total, global TV and video revenues are set to reach $64.78 billion in 2021, according to the combined forecast covering 100 countries in Digital TV Research. The sector will grow impressively, from $4.47 billion in 2010 and $29.41 in 2015, the Global OTT TV & Video Forecasts report estimates.
The US will lead China as the highest revenue earning nations for OTT TV and video services by 2021. US revenues will rise by $8.24 billion to $22.82 billion between 2015 and 2021, while China’s revenues will rise almost fivefold by $6.24 billion, researchers forecast.
Subscription video-on-demand (SVOD) will be the sector’s largest revenue source by 2018. SVOD will add $14.58 billion in revenues between 2015 and 2021, to $25.71 billion in 2021 – accounting for 40% of total OTT revenues. In 2010, SVOD accounted for 20% of total OTT revenues, earning $0.89 billion.
Advertising-based video-on-demand (AVOD) will, however, regain top spot by 2020, with AVOD reaping $15.37 billion by 2021. Mobile advertising will register strong growth, registering a global worth of $26.96 billion in 2012.
Digital TV Research forecasts 383 million SVOD subscriptions by 2021, up from 21 million in 2010 and 163 million by end-2015.
“It is important to note that these figures are for gross subscriptions. A home or a person can pay for more than one SVOD platform. This is reasonably commonplace in some countries such as the US, Scandinavia and the UK,” said Simon Murray, principal analyst, Digital TV Research.
“Furthermore, subscription figures for several countries (notably the US, Germany and the UK) are boosted by the inclusion of Amazon Video. Most of these homes access Amazon Video as part of their Amazon Prime subscription so they are not directly paying to receive Amazon Video. A significant proportion of Amazon Video viewers would probably not pay for it as a separate service.”
Of the 220 million SVOD additions from 2015 to 2021, 107 million will be in the Asia Pacific region and 28 million in the Middle East & Africa.
The North American SVOD market has still not reached saturation, with 28 million additions expected between 2015 and 2021. Western Europe will bring in an extra 30 million to its total, said Digital TV Research.
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