The market value of online video worldwide has been predicted to reach $37 billion by the year 2017.
According to UK telecom analyses firm, Informa Telecoms & Media, video services delivered online will account for 10% of total TV and video revenues before the end of the decade.
In its latest report “OTT Video Revenue Forecasts” released November 22, 2012, Informa Telecoms & Media said the projected $37 billion global online-video market will be driven by the “popularity of services like Netflix and YouTube” with advertising, subscriptions and transactions been the three key video-revenue streams.
Despite the market maturing, the report said advertising will continue to be a larger revenue generator than subscriptions in 2017, as it is in 2012.
Informa estimates that online video which still remains a small but growing proportion of total TV and video revenues, will account for 8% of such revenues by 2017.
A principal analyst at Informa, Giles Cottle, said “It’s clear that online video, today, is worth much more than the digital cents and dimes of yore, and is attracting real, and growing, revenues. But this value is concentrated around a select few players. We estimate that Apple, Google, Netflix and the global broadcasters (including Hulu), combined, account for about 70% of all online video revenue today– so if you aren’t one of these players, then the chances are you aren’t making a great deal of money from online delivery today”.
Meanwhile, Informa indicated that the US dominance of the global market will wane over the next five years, but will still contribute over half of all revenues in 2017.
The US accounts for approximately 75% of revenues today, but that will drop to less than 60% in 2017 as Europe and Asia grow more quickly, the report said.
Informa’s online video forecasts took into account revenue from advertising (pre/mid/post rolls only), subscriptions and transactions.
By Ekow Quandzie