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OTT TV and video revenues to more than double by 2021 to almost $15 billion, analyst firm says.
Over-the-top TV and video revenues in Western Europe will more than double between 2015 and 2021, with the U.K. emerging as the biggest contributor to growth, according to new research published on Thursday.
Revenues from OTT TV and video services in Western Europe will reach US$14.64 billion in 2021, up from $6.4 billion last year, Digital TV Research predicts.
The U.K. will be the biggest contributor to the $8.25 billion in revenues added during the period, bringing in an additional $2.3 billion, the firm estimates. Germany and France will also see strong upticks, adding $1.34 billion and $1.13 billion respectively, while Italy will contribute an extra $0.99 billion.
"The U.K. will remain the market leader by some distance," the analyst firm said, without providing further figures.
Subscription video on-demand (SVoD) will become the region’s largest OTT revenue source in 2018, but will be overtaken by advertising video on-demand (AVoD) two years later, boosted by mobile advertising growth.
AVoD will generate $5.79 billion in 2021, an increase of $3 billion on last year, with the U.K. again bringing in the largest share at $2.33 billion, followed by Germany at $904 million.
SVoD revenues will grow by $3.5 billion over the same period to $5.63 billion; the U.K. will again be the revenue leader, generating as much as Germany and France combined in 2021.
SVoD subscriptions will reach 53.71 million in Western Europe by 2021, up from 31.43 million at end-2016. 30.7% of TV households in the region will have a SVoD package by 2021, up from 13.6% at the end of last year.
