Report: North American SVOD Market ‘Far from Mature’

LONDON: Even though the North American region is the world's most mature SVOD market, there is still plenty of room for growth, a new report from Digital TV Research finds.

North America already had 50.6 million SVOD homes at the end of 2014, representing 38.8 percent of TV households and 48.1 percent of fixed broadband homes. This is a considerable gain on the 2010 figures, when there were 16.7 million SVOD homes, which is just 13 percent of TV households. While this makes the region the most mature SVOD market in the world, North America is still not entirely matured.

The Americas OTT TV & Video Forecasts report finds that 7.1 million more SVOD homes will be added in 2015 alone. The total is forecast to increase to 76.5 million by 2020, a gain of 26 million on 2014, giving it 57.3 percent penetration of TV households and 65.2 percent of fixed broadband homes.

The report also predicts that SVOD revenues will reach $7.09 billion in 2020, up from the $790 million in 2010 and $4.46 billion in 2014. Revenues are expected to grow by 59 percent between 2014 and 2020.

North American OTT TV and video revenues are forecast to amount to $20.5 billion in 2020; this is up from the $2.6 billion in 2010 and the $13.2 billion expected for 2015. Advertising on OTT sides is set to quadruple from the 2010 figures, reaching $6 billion in 2015. This rapid growth in adspend is poised to continue as well, reaching $10.3 billion in 2020.

Revenues generated from download-to-own (DTO) transactions are set to reach $2.2 billion in 2020, with movies contributing two-thirds of this revenue.

OTT TV and video rental/pay-per-view revenues will expand rapidly, climbing from $169 million in 2010 to $591 million in 2014 and to $999 million in 2020. Movies will be the top earner, providing $715 million by 2020.