OTT revenue to top $21.5B in 2016 as international demand ignites

Revenue from online TV and videos will increase more than six-fold to $21.52 billion in 2016, driven by international expansion and an increase in adoption by consumers, according to new research from Digital TV Research.

The report said the U.S. will maintain its revenue leadership, but will see its share drop from more than half to about one-third of global revenue. The report said its $1.87 billion share in 2010 will increase to $7.72 billion in 2016.

China stands to see the most massive growth, as over-the-top video revenues grow from $50 million in 2010 to $1.38 billion in 2016.

"The OTT television and video sector is on the brink of a huge take-off as the key players expand internationally, companies consolidate (with Hulu about to be sold to one of the existing major players) and as new partnerships are announced on a daily basis," said report author Simon Murray.

Murray forecast 415 million homes in 40 countries will watch online television and video in 2016, up 234 percent from 177 million in 2010.

In August, IMS Research said over-the-top video services could generate $16.4 billion in revenue by 2016, with video-on-demand services from pay-TV providers seeing an additional $14.7 billion. The $31.1 billion in combined on-demand revenues represent a significant recent shift in the way the world is getting its personal entertainment.

"Service and technology providers are finally delivering on the promise of video anywhere, anytime and to any device, which is exciting for consumers who are faced with an increasing amount of content to choose from," said Anna Hunt, principal analyst for IMS. "Pay-TV operators are aggressive in pursuing on-demand and multi-device initiatives in order to keep up with this trend and hedge against competition from OTT service providers."

For more:
- see this Broadband TV News article

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