Television revenues coming from online platforms — including that of over-the-top TV (OTT) services — are estimated to more than double in revenue from their current levels in five years.
By 2018, worldwide TV revenues from online and OTT businesses will reach nearly $35 billion — up from nearly $16 billion expected in 2013, according to media researcher Digital TV Research. Three years ago, the TV revenues from digital and online sources were nearly $4 billion.
Advertising revenues of these platforms will be about half that of the total $35 billion take — reaching $16.4 billion in 2018.
Research indicates that over-the-top TV services — which include Netflix and Hulu Plus — in particular will contribute to worldwide increases in revenue. Subscription video subscription-on-demand (SVOD) revenue will double in five years to $13 billion in 2018, from $6 billion by the end of this year.
The report says that in six years, 520 million homes in 40 countries will watch online television and video (both paid-for and ad-supported) — up from 182 million in 2010. Those buying SVOD will nearly triple by 2018, to reach 160.6 million — from 67.8 million by the end of 2013 and 21.9 million in 2010.