Asia Pacific OTT TV to surge to $10 billion
30 July, 2014
Asia Pacific online TV and video revenues (over fixed broadband networks) will reach $10.19 billion in 2020; a massive increase from the $0.54 billion recorded in 2010 and $2.68 billion in 2013, according to a new report from Digital TV Research. The OTT (over-the-top) TV sector is on the brink of a huge take-off for the 14 countries covered in the Asia Pacific Online TV & Video report as key players expand internationally, broadband penetration increases and as new partnerships are announced almost on a daily basis.
Online TV and video advertising has been the key driver for the OTT sector, with revenues of $1.69 billion expected in 2014, up from $0.33 billion in 2010. Rapid advertising expenditure growth will continue, to reach $4.61 billion in 2020. China will contribute $1.96 billion to the 2020 total, with Japan supplying a further $1.20 billion – these two countries will provide two-thirds of the region’s total.
Online television and video subscription revenues (SVOD) will soar from $110 million in 2010 to $1,272 million in 2014 and onto $3,493 million in 2020. Japan will lead the SVOD sector by a long way, with revenues of $1,927 million in 2020 – or 55% of the region’s total.
Online TV and video rental/pay-per-view revenues will expand rapidly, climbing from $36 million in 2010 to $804 million in 2020. Download-to-own revenues are forecast to be $1,283 million in 2020, up from only $58 million in 2010.
The number of homes paying a monthly subscription to receive SVOD packages will climb from 2.27 million in 2010 (0.3% of TV households) to 14.49 million by end-2014 (1.8%) and onto 53.41 million in 2020 (6.0%).