Expansion in both mature and emerging OTT markets around the world is expected to add more than $35.4 billion in new revenue by 2021, bringing the market to $64.78 billion, up 120% from $29.4 billion in 2015.
And, according to a new report from Digital TV Research, while SVOD is expected to see rapid growth through 2018, eclipsing ad-supported video in the market – and seeing the number of SVOD subs more than double to 383 million from 163 million in 2015 – AVOD is expected to rebound and make up the lion’s share of revenue by 2021 DTVR forecast AVOD revenues to grow more than $15.3 billion by 2021, compared to $14.58 billion in new revenue from SVOD.
OTT growth, DTVR forecast, will be widespread, including:
58% increase in North America to $24.4 billion in 2021 from $15.4 billion in 2015.
211% in Latin America to $3.59 billion from $1.15 billion.
220% in APAC to $18.4 billion from $5.74 billion.
129% in Western Europe to $14.6 billion from $6.4 billion.
335% in Eastern Europe to $1.98 billion from $454 million.
421% In MENA to $1.33 billion from $255 million. And,
2,023% in Sub-Sahara Africa to $467 million from $22 million.
While revenues in Latin America will triple and Sub-Sahara Africa will see revenues grow a whopping 2,023%, APAC will see the largest amount of new revenue between 2015 and 2021, adding $12.65 billion to the market, with North America adding $9 billion and Western Europe $8.25 billion, according to DTVR’s Global OTT TV & Video Forecasts report.
On a per-country basis, the U.S. will see the greatest raw growth, adding $8.24 billion to the pie, with China nearly quintupling revenues and adding $6.24 billion.
Online TV and video advertising has been boosted in recent years by the rapid growth in mobile advertising. Fast growth will continue; reaching a global total of $26.96 billion in 2021.
SVOD revenues will soar from $89 million in 2010 to $11.1 billion in 2015 and onto $25.7 billion in 2021. This means that SVOD will contribute 40% of total OTT revenues in 2021; double the 20% recorded in 2010.
“Mobile SVOD is growing rapidly in Asia – and will do so in the Middle East and Africa,” said DTVR Principal Analyst Simon Murray. “Mobile broadband is more established than fixed broadband in many developing countries.”
From the 220 million SVOD subscriber additions between 2015 and 2021, 107 million will be in the Asia Pacific region and 28 million in the Middle East & Africa. The North American market has still not reached maturity, with 28 million additions expected between 2015 and 2021. Western Europe will bring in an extra 30 million to its total.
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