OTT Ad Rev Will Decline, Current Revs $6 Bil
services -- Netflix, Hulu Plus and others -- will continue to drive revenues higher. But there will be a shift in a decreasing share of ad revenues for some services.
Global Information Inc. says advertising share of OTT revenues will decline to 51% in five years from 65% in 2010. The overall revenue from OTT businesses is currently some $6 billion, according to the research company.
Citing a report from Digital TV Research, the bigger global online TV and video businesses will more than double in five years, hitting $28.7 billion in 2017 from the $11.1 billion that is expected in 2012. This year's results would be three times that of $3.79 billion in 2010.
In five years -- 2017 -- there will be 480 million homes in 40 countries watching online television and video, up from 182 million in 2010. Also, by 2017, nearly 65% of the world's 745 million fixed broadband homes will view television and video online, up from nearly 34% of the 473 million fixed broadband total in 2010.
In 2012, new video services -- OTT services -- accounted for 7 billion euros of the world video market, which represents 3% of global video revenues.