Digital TV Research’s OTT & video revenue report predicts that global revenues will reach $64.8 billion in 2021 – a large increase from $4.5 billion in 2010 and $29.4 billion in 2015.
APAC will contribute most of the $35.4 billion additional revenues between 2015 and 2021: $12.7 billion. Western Europe will be contribute $8.3 billion and North America $9 billion. LATAM revenue will almost triple, and Eastern Europe and MEA revenue will grow even faster.
Despite North America being lower on contributions than APAC, the USA will remain the world’s leading OTT market. It will generate $22.8 billion in 2021, compared to $8.2 billion in 2015. Second-place China’s revenues will grow almost five-fold, to $6.2 billion.
As in Europe (OTT to Soar in Europe), subscription video on demand (SVoD) services will become the OTT largest revenue source by 2018, but advertising video on demand (AVoD) will regain its lead by 2020. SVoD will generate $14.6 billion between 2015 and 2021, while AVoD will generate $15.4 billion.
Online TV and video advertising has been boosted by the rapid growth of mobile advertising in recent years, and DTVR expects this to continue, reaching almost $27 billion by 2021.
SVoD revenues were $0.9 billion in 2010 and $11.1 billion in 2015; they are expected to reach $25.7 billion in 2021. This represents about 40% of total OTT revenues at the end of the forecast period, double the 20% recorded in 2010. DTVR forecasts 383 million (gross) SVoD subscribers worldwide by 2021, up from 21 million in 2010 and 163 million in 2015.
| Global OTT TV & Video Revenue Forecasts by Region ($ Millions) | ||||
|---|---|---|---|---|
| 2010 | 2015 | 2016 | 2021 | |
| North America | $2,674 | $15,389 | $18,078 | $24,387 |
| LATAM | $32 | $1,152 | $1,596 | $3,586 |
| APAC | $707 | $5,741 | $7,894 | $18,396 |
| Western Europe | $1,014 | $6,396 | $8,199 | $14,642 |
| Eastern Europe | $26 | $454 | $633 | $1,976 |
| MENA | $13 | $255 | $339 | $1,328 |
| Sub-Saharan Africa | $0 | $22 | $37 | $467 |
| Source: DTVR | ||||
Analyst Comment
Juniper Research has also released its own data on SVoD services, expecting companies like Amazon and Netflix (which now has US subscribers equal to providers like Comcast and DirecTV) to more than double their revenues by 2021. From $14.6 billion this year, the SVoD market will grow to $34.6 billion in 2021, says Juniper. (TA)
