OTT revenues tipped to double by 2025[addthis tool="addthis_inline_share_toolbox_p9bf"]
Global OTT revenues by source in US$m (via Digital TV Research)
Global OTT revenues are expected to reach US$167bn in 2025, more than doubling the US$83bn recorded last year, according to industry analysis firm Digital TV Research.
The company’s latest report estimates that 2020 will bring an additional US$16bn in OTT revenues, with SVoD revenues expected to account for 58% of that amount. By 2025, SVoD revenues are expected to jump to US$98bn, an increase of US$50bn from 2019’s figure.
The impact of the coronavirus pandemic on the global OTT industry, creating a surge in subscriptions and viewing numbers as people around the world stay at home, has led the analysis firm to overhaul its forecasts.
Additionally, due to pandemic’s effect on the advertising market, Digital TV Research expects AVoD growth for 2020 will be lower than in previous years, but expects it to recover further down the line.
Of the 138 countries analysed, the top five are expected to command two-thirds of global revenues by 2025. This is down from the 72% calculated in 2019, revealing that markets in the rest of the world are expected to grow at a faster rate than initially predicted.
The US is tipped to remain the largest OTT market, with revenues predicted to reach US$68bn by 2025 – an increase of almost US$33bn from 2019. China will be the second largest market, adding US$6bn to reach US$19bn over the same period.
Simon Murray, principal analyst at Digital TV Research, said: “Taking account of the coronavirus impact, we have overhauled our forecasts for 138 countries. SVoD has boomed during the lockdown – and thanks to the roll-out of Disney+.
“However, advertising confidence has been hit. We expect lower growth for AVoD in 2020 – but recovery thereafter.”