IPTV and Internet Video $35 Billion by 2018

Source: Digital TV Research

Source: Digital TV Research

The numbers are in, and they are big. According to Online TV and Video Forecasts report from Digital TV Research, Online TV and video revenues worldwide, over fixed broadband networks, is expected to reach $34.99 billion in 2018, an increase of over $30 billion from 2010′s recorded $3.98 billion in revenue.

According to the Online TV and Video Forecasts report from Digital TV Research. By 2018, 520 million homes in 40 countries will watch online television and video, up from 182 million in 2010. And
OTT is expected to increase substantially as many players in the industry expand internationally.

According to the Online Video and TV forecast:

Online TV and video advertising has been the key driver for the OTT sector, with revenues of $7.4 billion expected in 2013, up from $2.4 billion in 2010. Rapid advertising expenditure growth will continue, to reach a global total of $16.4 billion in 2018. However, advertising’s share of total OTT revenues will fall from 60.6% in 2010 to 46.9% in 2018.

The fastest growing paid-for OTT revenue stream will be subscription services. Although the likes of Netflix and Hulu Plus are already reasonably well established as streaming subscription services in North America, international markets have been relatively untouched – until now.

Online television and video subscription revenues (SVOD) will soar from $1 billion in 2010 to $6 billion in 2013 and onto $13 billion in 2018. The number of homes paying a monthly fee to receive SVOD packages will climb from 21.9 million in 2010 to 67.8 million by end-2013 and onto 160.6 million in 2018.

Subscription TV services will slow the Video On Demand and Pay Per View market as they offer similar value propositions. Yet, IPTV and video on demand and pay-per-view revenues are expected to increase precipitously from $207 million in 2010 to $2,103 million in 2018.

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