OTT revenues in Western Europe will reach $13.72 billion in 2020, according to newly released data from Digital TV Research.
It’s a dramatic climb from the $894 million recorded in 2010 and the $6.34 billion expected in 2015.
New report Western Europe OTT TV & Video Forecasts says the UK will remain the UK market leader, adding $2.15 billion of the $9 billion additional revenue anticipated between 2014 and 2010. Germany will contribute $1.60 billion, France $1.19 billion and Italy $1.12 billion.
Simon Murray, Principal Analyst at Digital TV Research, said: “We forecast 55.66 million SVOD homes by 2020, up from 1.66 million in 2010 and an expected 15.29 million by end-2015. Germany will overtake the UK to become the largest country by SVOD homes in 2020.”
SVOD [subscription video on demand] will become the region’s largest OTT revenue source in 2016. SVOD revenues will total $6,485 million by 2020 (47% of total OTT revenues) – up from only $106 million in 2010 (12% of total OTT revenues).
By 2020, 32.2% of the region’s TV households will subscribe to a SVOD package, up from only 9.0% by end-2014. Penetration will be notably higher in the Nordic countries than the others. However, four of the five largest countries (France, Germany, Italy and Spain) will be below 30%.