Asia Pacific OTT TV to surge to US$ 10 billion

London, UK, July 29, 2014--Asia Pacific online TV and video revenues (over fixed broadband networks) will reach US$ 10.19 billion in 2020; a massive increase from the US$ 0.54 billion recorded in 2010 and US$ 2.68 billion in 2013, according to a new report from Digital TV Research. 

The OTT (over-the-top) TV sector is on the brink of a huge take-off for the 14  countries covered in the Asia Pacific Online TV & Video report as key players  expand internationally, broadband penetration increases and as new partnerships  are announced almost on a daily basis.

Online TV and video advertising has been the key driver for the OTT sector, with revenues of US$ 1.69 billion expected in 2014, up from US$ 0.33 billion in 2010. Rapid  advertising expenditure growth will continue, to reach US$ 4.61 billion in 2020. China  will contribute US$ 1.96 billion to the 2020 total, with Japan supplying a further US$ 1.20  billion – these two countries will provide two-thirds of the region’s total. 

Online television and video subscription revenues (SVOD) will soar from US$ 110 million in 2010 to US$ 1,272 million in 2014 and onto US$ 3,493 million in 2020. Japan will lead the SVOD sector by a long way, with revenues of US$ 1,927 million in 2020 – or  55% of the region’s total.

Online TV and video rental/pay-per-view revenues will expand rapidly, climbing  from $36 million in 2010 to $804 million in 2020. Download-to-own revenues are  forecast to be $1,283 million in 2020, up from only $58 million in 2010.

The number of homes paying a monthly subscription to receive SVOD packages will climb from 2.27 million in 2010 (0.3% of TV households) to 14.49 million by  end-2014 (1.8%) and onto 53.41 million in 2020 (6.0%).