OTT Revenues To Climb 40% In 2018

OTT platforms in the United States will rocket 40% this year from a year ago -- to some $16.6 billion.

Projections come from the Convergence Research Group, which based their results on 55 OTT providers, including Netflix.

A year ago, OTT revenues were estimated to have climbed 41% to $11.9 billion versus 2016. By 2020 they are forecast to increase 66% to $27.6 billion.

The group says independent OTT operators command a 64% share of all OTT revenues, while traditional TV network/programmers command 29%; and pay TV access providers, 7%.  

In two years, this figure will grow in favor of TV networks and pay TV providers -- getting a 34% and 12% share, respectively. Independent OTT providers will sink a bit to a 54% share.

The group sees OTT taking a 90% share of U.S. movie/TV rental revenue in 2020.

At the same time, it projects 2018 revenues for traditional pay TV providers -- legacy cable, satellite and telco businesses, but not including OTT -- will dip from $107.6 billion to $107.4 billion by the end of year. In 2017, these revenues grow 1% from the year before.

Still, Convergence expects the industry’s existing subscribers to be paying more per month this year than last -- $97.80 on average from $94.30.



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