Driven by advertising, revenues from over-the-top video services will more than double in the next six years, reaching $42.3 billion by 2020, a new report from Digital TV Research forecasts, with most of that money rolling into the U.S.--at least for a little while, until international markets catch up.
Japan and China are likely to move into second and third place in terms of revenue in the OTT market segment. "China's online television and video revenues will soar from just $37 million in 2010 to $3,033 million in 2020," a Digital TV Research release said. By 2020, the United States will see just 37 percent of worldwide revenues, down from 59 percent in 2010.
Online video advertising, expected to total $8.3 billion this year globally, will continue a meteoric rise to $18.1 billion by 2020, according to the report. That's partially taking into account that revenues leaped from $2.4 billion just four years ago.
Meantime, SVOD (subscription video on demand) based OTT will grow more moderately. While revenues for this year will likely be about $7.65 billion, that amount will also double to $16.77 billion in the next six years.
Total OTT revenues for 2014 are expected to reach $19.03 billion globally.
The forecast seems pretty optimistic, but other research firms are predicting solid growth in the over-the-top segment as well. Strategy Analytics in early August said that revenue for all OTT services in the U.S. will reach $18 billion by 2019, with SVOD services alone doubling from $4.4 billion to $8.8 billion.
And a July report, also from Digital TV Research, forecast Asia-Pacific revenues would reach $10.19 billion in the next six years.
- see the release
Netflix, Amazon help drive North American OTT revenues above $10B
Asia-Pacific OTT TV revenues set to surge by 2020, reaching $10B