“Boom” goes online video – report

Global online TV and video revenues will get a massive increase over the next five years, more than doubling to reach US$ 28.72bn in 2017, according to new figures from UK firm Digital TV Research.

Simon Murray, author of the report, comments that the over-the-top TV sector is on the brink of a “huge take-off” as key players expand globally, companies consolidate and new partnerships are announced on a daily basis.

By 2017, 480mn homes in 40 countries around the world are expected to watch online television and video, up from 182mn in 2010.

By 2017, 64.6% of the world’s 745mn fixed broadband homes will view television and video online, up from 33.5% of the 473mn fixed broadband total in 2010.

Online TV and video advertising is described as being the key revenue driver in the OTT sector, recording revenues of US$ 6bn in 2012, up from US$ 2.4bn in 2010.

Rapid advertising expenditure growth will continue, to reach a global total of US$ 14.7bn in 2017. However, advertising’s share of total OTT revenues will fall from 65% in 2010 to 51% in 2017.

The US is expected to remain the dominant territory for online TV and video revenues, although its share of total revenues will drop from 53% in 2010 (when the US recorded revenues of US$ 2bn) to 38% in 2017 (US$ 10.952bn).

Meanwhile, China’s online television and video revenues will rocket from US$ 49mn in 2010 to US$ 2.057bn in 2017 (just ahead of Japan to take second place).

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