Technology

Revenue from delivery of internet video to TV to grow 6-fold: study









MUMBAI: Revenue from the delivery of Internet video to the TV will grow nearly six-fold in the next five years, from a meager $1 billion in 2009 to $5.7 billion in 2014, reveals a new report from The Diffusion Group.


These forecasts are part of TDG’s latest digital media analysis, Broadband Enabled TV: Rise of the OTT Provider, authored by TDG senior partner and digital video expert, Colin Dixon.

 

Dixon posts that in 2009, pay-per-view services will account for 96 per cent of global OTT revenue, leaving subscription revenue with only four per cent of the revenue mix. By 2014, however, annual OTT subscription revenue will have grown 50-fold and account for 31 per cent of the global revenue.Dixon points to current hardware trends fueling this growth, specifically the ongoing shift to broadband-enabled TVs and the rapid diffusion of ancillary web-enabled platforms such as game consoles



, Blu-ray players, and hybrid set-top boxes. Widespread penetration of such platforms will set the stage for a rapid uptake of internet-to-TV video services, both pay-per-view and subscription-based.


As these platforms more widely diffuse and consumers become more comfortable with using internet-based TV services, the market will be primed for the arrival of full-fledged PayTV replacement services. Subsequently, TDG expects major OTT service announcements in virtually all global regions in 2010 and 2011, both in terms of stand-alone OTT and hybrid PayTV/OTT TV services, both of which will help fuel growth in OTT subscription revenue to $1.8 billion worldwide by 2014.


At that time, the US will account for the vast majority of global OTT subscription revenue ($830 million) followed by Asia ($490 million), and Europe ($407 million). Other global regions will collectively account for only $60 million of this total.

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