October 13, 2017
Over the next five years, OTT TV and film revs to reach $83bn
According to a study from Digital TV Research, online TV episode and movie revenues for the leading 138 countries are going to hit $83 billion in 2022, which is more than twice of the $37 billion recorded in 2016.
The new Global OTT TV & Video Forecasts report also suggests that Over the Top (OTT) revenues will exceed $1 billion in 14 countries by 2022, twice that at the end of 2017. Two-thirds of global revenues will go to the top 5 nations. $9 billion will be added in 2017 alone.
US will continue to be the leading territory for online TV and video revenues by some margin. US share of the global market is set to fall from 51% in 2016 to 40% in 2022. China will add a further $7.6 billion, with its total revenues hitting $12 billion in 2022.
According to the report, Subscription Video on Demand (SVOD) became the largest source of OTT revenue in 2013. Half of OTT revenues by 2022 are estimated to be generated by 2022. $24 billion in revenues will be added between 2016 and 2022.
AVOD revenues are up by $17 billion and its revenues will amount to $29 billion by 2022, up from $12 billion in 2016.
Revenues and SVOD subscribers to increase two-fold by 2022
Speaking at the Nordic TV Summit in Copenhagen, September 28th, Simon Murray, principal analyst at Digital TV Research, also showcased how the number of subscription video on demand (SVOD) services is expected to reach 546 million by 2022. In other words – expected to double the 263 million by end of 2016. It covers 621 platforms in 138 countries which means SVoD revenues are expected to get to twice the number in the period hitting $US 41 billion in 2022 as opposed to 17 billion in 2016.
Subscriptions in the Asia Pacific region are all set to overtake North America from next year. Asia Pacific will account for 43% of global SVOD subscribers by 2022. North America will provide 31%, up from 35% in 2016 respectively.
Netflix’s global dominance overall is decreasing to one fourth by 2022, from a third last year. 28 million subs are being added between 2017 and 2022. Netflix’s global SVoD revenue share will fall to 40% by 2022 from 45% in 2017.