Advanced Television

Revenue boom forecast for global OTT TV

October 31, 2012

Global online TV and video revenues will reach $28.72 billion in 2017, a massive increase from the $3.79 billion recorded in 2010 and the $11.14 billion expected in 2012, according to a report from Digital TV Research. The report highlights that the OTT TV sector is on the brink of a huge take-off as the key players expand globally, companies consolidate and as new partnerships are announced on a daily basis.

By 2017, 480 million homes in 40 countries will watch online television and video, up from 182 million in 2010. By 2017, 64.6 per cent of the world’s 745 million fixed broadband homes will view television and video online, up from 33.5 per cent of the 473 million fixed broadband total in 2010.

Online TV and video advertising is the key driver in the OTT sector, recording revenues of $6.0 billion in 2012, up from $2.4 billion in 2010. Rapid advertising expenditure growth will continue, to reach a global total of $14.7 billion in 2017. However, advertising’s share of total OTT revenues will fall from 65 per cent in 2010 to 51 per cent in 2017.

The US will remain the dominant territory for online TV and video revenues. However, its share of total revenues will drop from 53 per cent in 2010 (when the US recorded revenues of $2,001 million) to 38 per cent in 2017 ($10,952 million). China’s online television and video revenues will rocket from $49 million in 2010 to $2,057 million in 2017 (just ahead of Japan to take second place).

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