European online video revs, subs set to soar to 2020 | Online Video | News | Rapid TV News
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A report from Digital TV Research is predicting a boom for the online TV and video markets over the next five years.

RokuSeagateThe European Online TV & Video report forecasts that overall online TV and video revenues over fixed broadband networks will reach $12.872 billion in 2020, up from the $4.804 billion expected by the end of 2014. Yet the spectacular growth will be with online television and video subscription revenues that are projected to soar from $116 million in 2010 to $1.633 billion in 2014 and to $5.502 billion in 2020. The driving force behind this will be a leap in subscription video-on-demand (SVOD) subs which are projected to leap from 17.99 million by the end of 2014, or 6.4% of TV households, to 59.41 million in 2020, just over a fifth.

Regionally, the UK is on track to remain the SVOD revenue market leader, although Germany will be close behind by 2020. Yet even though it will likely remain the dominant territory for online TV and video revenues, the UK's share of regional revenues will drop from 30% in 2010 to 20% in 2020. Italy will climb from only $66 million in 2010 to $1,237 million by 2020. Russia will grow from $20 million in 2010 to $874 million by 2020 and 6.8% of Eastern European TV households (11 countries) will subscribe to an SVOD package by 2020, compared with 29.7% in Western Europe (15 countries).

Digital TV Research also calculates online TV and video advertising revenues to be $2.305 billion in 2014, up from $663 million in 2010. It expects rapid advertising expenditure growth to continue, reaching $5.117 billion across Europe in 2020. The UK is set to be market leader, accounting for $1.175 billion in 2020. At the same time, online TV and video rental/pay-per-view revenues will likely also expand rapidly, climbing from $55 million in 2010 to $858 million in 2020. Download-to-own revenues are forecast to be $1.395 billion in 2020, up from $89 million in 2010.