Annual global OTT revenues are on track to reach $167 billion in 2025, according to new data from Digital TV Research. That’s more than double the $83 million in revenue from 2019. SVOD will continue to represent the lion’s share of that revenue, and COVID-19 has temporarily stunted the growth of AVOD revenues.
“Taking account of the coronavirus impact, we have overhauled our forecasts for 138 countries,” said Simon Murray, principal analyst at Digital TV Research. “SVOD has boomed during the lockdown—and thanks to the rollout of Disney+. However, advertising confidence has been hit. We expect lower growth for AVOD in 2020—but recovery thereafter.”
SVOD will consistently represent about 58% of overall OTT revenues, accounting for more than $61 billion this year and more than $98 billion in 2025. AVOD will generate more than $26 billion this year, but then more than double to $53 billion-plus in 2025.
Both rental and transactional revenue will stay relatively consistent, on a percentage basis. Rentals will generate nearly $5 billion this year, then rise to just over $6 billion in 2025. Electronic sell-through revenues, though, will go from $6.8 billion in 2020 to just over $10 billion in 2025.
Digital TV Research evaluated 138 countries and found that the top five countries will account for two-thirds of global revenues in 2025, down slightly from 2019 (72%) and pointing to the increased growth outside of major markets. OTT revenues will pass $1 billion in 19 countries in 2025, compared to 13 countries in 2019.
Revenues in the U.S. will double between 2019 and 2025, going from $33 billion to $68 billion. China, on the other hand, will see slower growth this year and next (particularly in AVOD), but will start on a faster growth path again after 2021, reaching $19 billion total revenue in 2025.
The full report can be purchased here.