Total U.S. OTT revenue will grow at a 10.3% compounded annual growth rate to $23.7 billion to 2023. It was $14.5 billion in 2018, according to PwC (PricewaterHouseCoopers).
Overall, U.S. OTT revenue will grow 63% in four years from 2018 levels.
OTT revenues here include subscription video-on-demand (SVOD) services and transactional VOD (TVOD) services, such as iTunes, which do not require a subscription.
The biggest growth for OTT will come from subscription video-on-demand (SVOD), which will see a 12.3% annual growth rate from $10 billion in 2018 to $17.8 billion in 2023.
The report says the SVOD growth rate will be slowing considerably over that period on a yearly basis -- at 9.7% in 2023 from 19.1% in 2018.
U.S. transactional VOD revenue will move up 5.4% through 2023 to $5.9 billion from $4.5 billion in 2018. TVOD revenue will slow to 4.5% in 2023 from 8.3% in 2018.
Globally, the market will be stronger over this period. Worldwide OTT revenues will grow at a 14% compounded annual rate for the 2018-2023 period, rising to $72.8 billion from $38.1 billion in 2018.
SVOD will climb 15% to $62.0 billion from $30.4 billion.
PwC says Asia will be a major growth area. It also notes that global cord-cutting issue is less of a concern in non-U.S. markets -- with consumers in those territories buying OTT services alongside traditional pay TV providers.