- Share this article on Facebook
- Share this article on Twitter
- Share this article on Flipboard
- Share this article on Email
- Show additional share options
- Share this article on Linkedin
- Share this article on Pinit
- Share this article on Reddit
- Share this article on Tumblr
- Share this article on Whatsapp
- Share this article on Print
- Share this article on Comment
Worldwide over-the-top TV and video revenue will reach $51.1 billion in 2020, nearly doubling the $26.0 billion expected in 2015, according to a new forecast.
Research firm Digital TV Research cited the global expansion of Netflix as a key driver behind accelerated momentum and highlighted that the revenue growth would be “a massive increase” from the $4.2 billion recorded in 2010. The firm tracks 64 countries.
According to its Global OTT TV & Video Forecasts report, the U.S. will remain the dominant market with OTT TV and video revenue rising by $16.6 billion between 2010 and 2020 to nearly $19.1 billion.
China will see growth from just $40 million in 2010 to $2.815 billion in 2020, elevating it to the fourth-largest OTT market by then, according to the research firm.
Overall, it predicts OTT revenue will exceed $1 billion in 11 countries by 2020. The top 5 countries in terms of revenue in 2014 were the U.S. (with $10.74 billion), U.K. ($1.73 billion), Japan ($1.67 billion), Canada ($713 million) and Germany ($701 million), according to Digital TV Research. In 2020, it predicts that the top 5 will be the U.S. ($19.09 billion), Japan ($4.07 billion), U.K. ($3.89 billion), China ($2.82 billion) and Germany ($2.30 billion).
Subscription VOD will become the largest revenue source in 2020, overtaking OTT advertising, it forecasts. SVOD revenue will soar from $1.0 billion in 2010 to $7.6 billion in 2014 and $21.6 billion in 2020. The U.S. generated SVOD revenue of $753 million in 2010, which will jump to $6.516 billion in 2020, according to the forecast.
“SVOD has developed even faster than we expected in our last edition a year ago,” said Simon Murray, principal analyst at Digital TV Research. “Some of this growth was spurred by Netflix’s aim to establish operations in 200 countries by end-2016. Not only has the launch of Netflix boosted each market, but the anticipation of its launch has galvanized local players into action — creating a whirlwind of promotional activity.”
Digital TV Research now expects Netflix’s international paying subscribers to grow to 26.36 million by the end of 2015.
Sign up for THR news straight to your inbox every day