Online TV & Video to Generate $35 Billion by 2018

LONDON: Revenue for global online TV and video is poised to reach $34.99 billion in 2018, which is a massive gain from the $15.94 billion expected in 2013, according to forecasts from Digital TV Research.

By 2018, it is expected that 520 million homes in 40 countries will be watching online TV and video, both paid-for and ad-supported, up from the 182 million recorded in 2010.

Digital TV Research predicts that the OTT sector is on the brink of a huge take-off, with key players expanding internationally, broadband penetration increasing, technology advancing and new partnerships being formed all the time. Online TV and video advertising has been a main driver for the OTT sector, with revenues of $7.4 billion expected this year, up from $2.4 billion in 2010. This growth is forecast to continue, reaching a global total of $16.4 billion in 2018. However, advertising's share of total OTT revenues is expected to slip from 60.6 percent in 2010 to 46.9 percent in 2018.

Online TV and video subscription revenues (SVOD) is predicted to spike from $1 billion in 2010 to $6 billion in 2013 and up to $13 billion in 2018. The number of homes paying a monthly fee to receive SVOD packages will jump from 21.9 million in 2010 to 67.8 million by the end of 2013 and up to 160.6 million in 2018.