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North America already had 50.6 million SVoD homes [for movie and TV services only – excluding sports] by end-2014 – or 38.8 per cent of TV households and 48.1 per cent of fixed broadband homes, according to a report from Digital TV Research. The Americas OTT TV & Video Forecasts report estimates that this represents considerable growth since 2010 when there were 16.7 million SVoD homes (13 per cent of TV households). Therefore the North American region is the world’s most mature for SVoD.
However, the market is not yet mature. In fact, 7.1 million more SVoD homes will be added in 2015 alone. The total is forecast to climb to 76.5 million by 2020 – up by 26 million on 2014 – giving 57.3 per cent penetration of TV households and 65.2 per cent of fixed broadband homes.
SVoD revenues will soar from $0.79 billion (€0.70) in 2010 to $4.46 billion in 2014 and onto $7.09 billion in 2020. Revenues will grow by 59 per cent between 2014 and 2020.
North American OTT TV and video revenues will reach $20.5 billion in 2020; up from $2.6 billion in 2010 and the $13.2 billion expected in 2015.
Advertising on OTT sites will generate revenues of $6 billion in 2015, quadruple the $1.4 billion in 2010. Rapid advertising expenditure growth will continue, to reach $10.3 billion in 2020.
DTO revenues are forecast to be $2,197 million in 2020, up from $321 million in 2010 and $1,218 million in 2014. Movies will contribute two-thirds of DTO revenues by 2020, with TV series providing the rest.
OTT TV and video rental/pay-per-view revenues will expand rapidly, climbing from $169 million in 2010 on to $591 million in 2014 and to $999 million in 2020. Movies will be the main earner; providing $715 million by 2020. TV box sets becoming a more popular promotional tool than single episodes.