Advertising is a key driver for online video revenues in the Asia-Pacific region, a new report by Digital TV Research says, and along with subscription video on demand (SVOD) will help drive revenue figures upward over the next six years to $10.19 billion.
It's quite a jump from the half-billion or so in revenues recorded for the region in 2010, but those figures have marched steadily upward. In 2013, Asia-Pacific countries saw $2.68 billion in OTT revenue.
China and Japan will top the countries spending for advertising and are expected to contribute $1.96 billion and $1.20 billion, respectively, by 2020.
At the same time, SVOD will see a respectable jump, with revenues currently at $1.27 billion and projected to reach $3.5 billion by 2020. The number of SVOD households will go up as well, to 14.5 million by the end of 2014 and to 53.41 million by 2020, or 6 percent of all Asia-Pac households.
The regional data is interesting in light of the growth in popularity of OTT in the U.S. A recent Nielsen study found that there were 1.6 million U.S. households that have broadband only, with no cable or satellite subscription, suggesting they use either OTT services or an over-the-air antenna to receive television signals, or both.
Asia-Pacific OTT revenues, 2010-2020. (Source: Digital TV Research)
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