Asia Pacific SVOD homes set to quadruple over next five years | VOD | News | Rapid TV News
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The number of subscription video-on-demand (SVOD) homes in the Asia Pacific region is set for rapid growth until 2020 says a survey from Digital TV Research.

The Asia Pacific OTT TV & Video Forecasts report predicts that there will be 68.83 million such homes by then, quadruple the 2014 total and up from only 1.47 million in 2010. By 2020, Digital TV Research expects that 7.7% of the region's TV households will subscribe to a SVOD package, up from only 0.2% by end-2014.

Penetration rates will vary considerably across the region. South Korea will likely have a penetration rate of 54.3%, while in Pakistan it will be 1.5%. Yet China will overtake South Korea to become the second largest country by SVOD homes in 2020, with Japan remaining the region's largest SVOD country. The region will show overall 51.63 million SVOD home additions between 2014 and 2020, China will supply 11.84 million, Japan 12.55 million and India 7.21 million.

The boost in penetration will also drive SVOD to become the region's largest OTT revenue source in 2018, increasing from $1.032 billion in 2014 and to $4.763 billion in 2020. Japan will remain the SVOD revenue leader by some distance, with second-placed South Korea generating less than half its revenues by 2020.

This will be part of total OTT TV and video revenues of reach $11.293 billion in 2020, up from the $3.628 billion expected in 2015. From the $7.664 million in revenues to be added between 2014 and 2020, China will contribute $2,127 million and Japan $2,404 million. China and Japan will account for 61% of the region's total revenues by 2020. Advertising on OTT sites will bring in $4,354 million by 2020 – up from $1,607 million on 2014. China will supply $1,812 million of the 2020 total, with Japan providing a further $1,191 million.

Download-to-own revenues will provide a significant supplement to the overall figures, forecast to be $1.446 billion in 2020, up from only $159 million in 2010 and from $662 million in 2014. Digital TV Research expects OTT TV and video rental/pay-per-view revenues to expand rapidly, climbing from $111 million in 2010 to $503 million in 2014 and to $1,161 million in 2020.