Global online TV and video revenues will hit $28.72 billion in 2017, a giant leap from the $3.79 billion recorded in 2010 and the $11.14 billion expected in 2012, according to a new report from Digital TV Research.
The Online TV and Video Forecasts report — which covers fixed broadband developments – not smartphones or tablets — says that the over-the-top TV sector is “on the brink of a huge take-off as the key players expand globally, companies consolidate and as new partnerships are announced on a daily basis.”
By 2017, 480 million homes in 40 countries will watch online television and video, up from 182 million in 2010, according to the report.
By 2017, 64.6 percent of the world’s 745 million fixed broadband homes will view television and video online, up from 33.5 percent of the 473 million fixed broadband total in 2010.
Online TV and video advertising is the key driver in the OTT sector, recording revenues of $6 billion in 2012, up from $2.4 billion in 2010.
Digital TV Research predicts that rapid advertising expenditure growth will continue, hitting a global total of $14.7 billion by 2017. But advertising’s share of total OTT revenues will slump from 65 percent in 2010 to 51 percent in 2017.
The U.S. will remain the dominant territory for online TV and video revenues.
But there’s a health warning: The US share of total revenues will drop from 53 percent in 2010 — when the territory recorded revenues of $2 billion — to 38 percent in 2017, predicting a $10.9 billion tally.
China’s online television and video revenues will rocket from $49 million in 2010 to $2 billion in 2017, just ahead of Japan to take second place.