September 20, 2018
Spurred by Netflix and Amazon Prime Video, worldwide revenue from online access to TV shows and movies is projected to reach $129 billion in 2023 – more than double the $53 billion generated in 2017, according to new data from Digital TV Research. Global OTT video revenue is expected to reach $71 billion this year.
From the 138 countries covered in DTV report, “Global OTT TV & Video Forecasts,”the top five will command 69% of worldwide revenue by 2023. This percentage is down from 73% in 2017; suggesting the rest of the world will grow at a faster rate. Or that both Netflix and Amazon Prime Video are global operations.
OTT revenue will exceed $1 billion in 17 countries by 2023; up from 10 countries in 2017.
“No prizes for guessing that the U.S. will remain the dominant territory by some distance,” Simon Murray, principal analyst at DTVR, said in a statement. “However, its share of global revenue will fall from 43% in 2017 to 37% by 2023. We forecast that revenue in the U.S. will more than double between 2017 and 2023 – adding nearly $25 billion to reach $48 billion.”
Next to the U.S. – birthplace of OTT video – China will add $17 billion to nearly triple its OTT video revenue to $26 billion. China’s share of the world’s total will climb from 16% in 2017 to 20% in 2023.
Subscription video on-demand became the largest OTT revenue source in 2016 by overtaking ad-supported VOD. SVOD’s share of the total will increase from 47% in 2017 to 53% in 2023. The report contends that SVOD revenue will climb by nearly $44 billion between 2017 and 2023 to take the total to $69 billion.
AVOD revenue will increase by $27 billion between 2017 and 2023 to take its total to $47 billion (36% of total revenue).