OTT on the Rise in Eastern Europe

LONDON: OTT TV and video revenues in Eastern Europe are expected to reach $1.98 billion in 2021, a nice lift from the $26 million recorded in 2010, according to a new report from Digital TV Research.

The total was $454 million in 2015, as stated in the Eastern Europe OTT TV & Video Forecasts report. Russia accounted for half the region’s OTT revenues in 2015 and will remain at around this level for the next five years. From the $1.52 billion additional revenues between 2015 and 2021, Russia will provide $724 million. Poland will bring in a further $220 million.

Simon Murray, principal analyst at Digital TV Research, said: “The Eastern European OTT TV and video sector is more immature than most of the rest of the world. Although this is changing with several platform launches, the region will still have lots of room for growth after 2021.”

SVOD is poised to become the region’s largest OTT revenue source in 2016. SVOD revenues will ring in at $1.14 billion by 2021, up from $4 million in 2010. Russia will remain the SVOD revenue leader, with Poland taking second place. Digital TV Research forecasts 19.71 million SVOD subscribers by 2021, up from 125,000 in 2010 and 3.36 million by end-2015. Russia will have more than 10 million SVOD subscribers by 2021.

Murray explained: “Netflix launched across the region in January 2016. However, it has been criticized for being too expensive [€8-12/month], lacking local content—or even being too English-language, and is yet to announce any local distribution partnerships. Perhaps Netflix has plans to rectify this, but it better move quickly before local players (especially in Russia and Poland) gain too great a foothold.”