Informa Telecoms and Media forecasts that the OTT video market will be worth over US$37 billion in 2017. However, advertising will still be a larger revenue-generator than subscriptions in the OTT-video market in 2017, highlighting its continued immaturity. Although US$37 billion is an eye-catching number, OTT remains a small proportion of total TV and video revenues.
Informa estimates that OTT will only generate 8% of these revenues by 2017, its share of overall TV revenues will only reach double-digits toward the end of this decade. And while US dominance of the OTT market will wane slightly over the course of the forecast period, it will still account for over half of all revenues by 2017.
OTT revenues, but less of a shift in the business-model mix. The US accounts for over 75% of revenues today, but that will drop to less than 60% in 2017 as Europe and Asia grow more.
In 2017, the split among advertising, subscriptions and transactions will be similar to the splits in 2012, with subscriptions growing slightly at the expense of the other two formats. But the headline figures here belie a more interesting trend. In terms of share, advertising actually peaks in 2015, at 55% of all revenue, before dropping sharply in 2017 to 50%. Informa expects that, beyond 2017, the revenue mix will adjust to something similar to what we see with TV today, with advertising and subscriptions taking similar amounts of revenue on a global scale
Informa’s OTT Video Revenue report features forecasts for the global regions, and 13 key countries, covering OTT advertising, subscriptions and transactions, including commentary explaining these revenue trends. This research will help you assess where the money will be in OTT, shape your strategies around the regions where revenue growth will be largest and find out which business models will be the most profitable.
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