Global online TV and video revenues will reach $42.34 billion in 2020, up from $3.96 billion recorded in 2010 and the $19.03 billion expected in 2014, according to the ‘Global Online TV & Video Revenue Forecasts’ report from Digital TV Research.
The study also found that the US will continue to be the leading OTT TV territory for online TV and video revenues. However, its share of total revenues will drop from 59% in 2010 (when the US recorded revenues of $2,326 million) to 37 percent in 2020 ($15,527 million) as the international markets catch up. For example, China’s online television and video revenues will soar from just $37 million in 2010 to $3,033 million in 2020 – to push China up to third place in the world rankings (with Japan in second place).
Digital TV Research say that online TV and video advertising has been the main driver for the OTT sector, with revenues of $8.3 billion expected in 2014, up from $2.4 billion in 2010. Advertising expenditure is also expected to grow, to reach a global total of $18.1 billion in 2020.
Online television and video subscription revenues [SVOD] will climb from $1.06 billion in 2010 to $7.65 billion in 2014 and onto $16.77 billion in 2020, meaning that that SVOD will contribute 40% of total OTT revenues in 2020, up from 27% in 2010.
The US generated online TV and video subscription revenues of $793 million in 2010, or 75% of the global total. Although its revenues will climb by 667% to $6,086 million, the US will only account for 36% of the 2020 total.