Revenues from online TV and video are poised to surge to nearly $22 billion by 2016, and the United States will be one of the principal beneficiaries, according to a report.
Digital TV Research forecasts that global online and TV revenues will rise from $3.48 billion last year to $21.52 billion in 2016.
“The OTT television and video sector is on the brink of a huge take-off as the key players expand internationally, companies consolidate … and as new partnerships are announced on a daily basis," said Simon Murray, the author of Digital TV Research’s Online TV and Video Forecasts report, in a statement.
Of the $21.52 billion in projected global revenues in 2016, the United States will account for more than one-third of the pie, according to the report. However, the firm projects that the nation’s share of total revenues will decline from 54 percent in 2010 ($1.868 billion) to 36 percent in 2016 ($7.722 billion). Meanwhile, online TV and video revenues in China will explode from $50 million in 2010 to $1.380 billion in 2016.
Advertising is helping to fuel revenue growth in the over the top (OTT) TV and video market: Ads accounted for $2.18 billion in 2010 revenues and will reach $9.98 billion in 2016, but advertising’s share of OTT revenues will decline from 63 percent last year to 46 percent in 2016 as other sources of revenue grow, including subscriptions.
