Global OTT TV and video revenues covering 64 countries are expected to reach $51.1 billion in 2020, jumping from $4.2 billion in 2010 and an expected $26 billion this year, according to Digital TV Research.
The US will remain the dominant territory, with revenues rising by $16.6 billion between 2010 and 2020 to $19.1 billion.
China’s OTT TV and video revenues will rocket from just $40 million in 2010 to $2.8 billion in 2020, pushing China up to fourth place in the world rankings.
SVoD (subscription video on demand) will become the largest revenue source in 2020, overtaking OTT advertising and adding $14 billion between 2014 and 2020 at 7.6 billion and $21.6 billion, respectively.
By 2020, there will be some 249 million SVoD homes by 2020, up from 20 million in 2010 and an expected 117 million by end-2015, according to Digital TV Research.
The US will contribute 70 million SVoD homes to the 2020 total. In 2010, the US generated SVOD revenues of $753 million, a figure that is expected to climb by 765% to reach $6.5 billion in 2020.
“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.”