Revenues from over-the-top (OTT) services will reach US$21.5 billion (€15.8 billion) by 2016, according to new forecasts. Digital TV Research says that the total will rocket from the US$3.5 billion recorded in 2010 and that the US and Japan will be the countries that generate the most revenue from OTT.
The research firm says that the number of people watching online TV and video will increase from 177 million, across 40 countries, in 2010 to 410 million by 2016.
By territory, the US will be far and away the greatest OTT revenue generator, with cumulative revenues totaling US$7.7 billion by 2016. At the same point, second-placed Japan will bring in US$1.7 billion. In Europe, Germany will lead the way, with revenues of US$1.3 billion, ahead of the UK with US$1.2 billion and then Italy with US$799 million.
The proportion of revenues generated by advertising, download-to-own, pay-per-view and subscription will also change between now and 2016. Ad revenues will account for about 45% of the cumulative 2016 total, compared with over 60% in 2010, as the other segments increase their share of the pie. In 2016, ad revenues from OTT services will generate US$10 billion and subscription services US$5.6 billion.
Report author Simon Murray said: “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 existing major players] and as new partnerships are announced on a daily basis.”