Report Forecasts Surge in Asian SVOD Homes

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LONDON: There will be 68.83 million SVOD homes across the Asia Pacific by 2020, Digital TV Research indicates in a new report, four times the 17.1 million in the region last year.

Asia Pacific OTT TV & Video Forecasts says that Japan will remain the region's biggest SVOD territory, with 20.5 million homes by 2020, as compared with just under 10 million this year. The Chinese market is expected to surge, rising to 12.3 million by 2020. This will make it the region's second-largest SVOD market, ahead of Korea, where the number of SVOD homes will rise from just under 8 million this year to 10.2 million in 2020. In distant fourth will be India, rising from 2.6 million to 8.9 million. The number of Australian SVOD homes should hit 3.3 million in 2020. Indonesia is expected to see dramatic growth from 378,000 to 3 million in the next five years. By 2020, Digital TV Research forecasts that 7.7 percent of AsiaPac's TV households will subscribe to an SVOD service.

In terms of SVOD revenues, the report forecasts an increase from $1 billion in 2014 to $4.8 billion in 2020. Overall OTT TV and video revenues are expected to reach $11.3 billion in five years' time, up from $3.6 billion this year. SVOD will be the dominant OTT revenue source by 2018. Advertising on OTT sites will contribute $4.4 billion by 2020. Download-to-own revenues will reach $1.4 billion, and rental/PPV revenues are expected to climb to $1.2 billion.