OTT Revenues to Reach to US$ 42 billion by 2020

London, UK, September 25, 2014--Global online TV and video revenues (over fixed broadband networks for 51 countries) will reach US$ 42.34 billion in 2020; up from US$ 3.96 billion recorded in 2010 and the US$ 19.03 billion expected in 2014, according to a new report from Digital TV  Research. 

The US will remain the dominant OTT TV territory for online TV and video  revenues, according to the Global Online TV & Video Revenue Forecasts report. However, its share of total revenues will drop from 59% in 2010 (when the US  recorded revenues of US$ 2,326 million) to 37% in 2020 (US$15,527 million) as the  international markets catch up. China’s online television and video revenues will  soar from just US$ 37 million in 2010 to US$ 3,033 million in 2020 – to push China up to third place in the world rankings (with Japan in second place).

Online TV and video advertising has been the key driver for the OTT sector, with revenues of US$ 8.3 billion expected in 2014, up from US$ 2.4 billion in 2010. Rapid advertising expenditure growth will continue, to reach a global total of US$ 18.1 billion  in 2020. 

Online television and video subscription revenues [SVOD] will climb from US$ 1.06 billion in 2010 to US$ 7.65 billion in 2014 and onto US$ 16.77 billion in 2020. This means 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 $793 million in  2010, or 75% of the global total. Although its revenues will climb by 667% to US$ 6,086 million, the US will only account for 36% of the 2020 total.  Online TV and video rental/pay-per-view revenues will expand rapidly, climbing  from US$ 197 million in 2010 to US$ 2,800 million in 2020. Download-to-own revenues are forecast to be US$ 4,641 million in 2020, up from US$ 332 million in 2010.