According to new figures from Digital TV Research, this total will be double the revenue of 2019 (US$83 billion) with an estimated US$16 billion to be added in 2020 alone.
The report notes that SVOD will continue to be the dominant force in OTT, with its share of revenue set to stay at around 58%. This translates to a US$50 billion increase in revenue between 2019 and 2025 to a total of US$98 billion.
AVOD will cement itself in second place with revenue of US$54 billion – more than double the 2019 total of US$24 billion.
The top five countries will command two-thirds of global revenues by 2025, with the US being the largest at US$68 billion – up almost US$33 billion from 2019. However, those top five countries will be less dominant from their previous standing of having 72% of the market in 2019. This indicates that the rest of the world will grow at a faster rate – reflected by an estimation that OTT revenues will exceed $1 billion in 19 countries by 2025; up from 13 countries in 2019.
China will be the second largest market, adding US$6 billion to reach US$19 billion. The report notes that the country has been hit hard by the global economic slowdown with AVOD falling in the past two years, but that things will pick up going forward.
Simon Murray, principal analyst at Digital TV Research, said: “Taking account of the corona virus impact, we have overhauled our forecasts for 138 countries. SVOD has boomed during the lockdown – and thanks to the rollout of Disney+. However, advertising confidence has been hit. We expect lower growth for AVOD in 2020 – but recovery thereafter.”