Online TV and video to generate $35 billion by 2018

Global online TV and video revenues over fixed broadband networks are expected to reach $35 billion in 2018, up from the $15.94 billion expected in 2013, according to research from Digital TV Research.

By 2018, the Online TV and Video Forecasts report states that 520 million homes in 40 countries will watch online television and video (both paid-for and ad-supported) – more than three times the number in 2010.

The over-the-top TV sector is on the brink of a huge take-off, according to DTR, as key players expand internationally, broadband penetration increases, technology advances and as new partnerships are announced on a daily basis.

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.

DTR predicts that 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, with online television and video subscription revenues rising from $6 billion in 2013 and to $13 billion in 2018.