China will overtake Japan this year as the top OTT dog in the Asia-Pacific region, according to a new report.
Overall, OTT TV and video revenues for the 17 countries in the Asia-Pacific market will reach about $18.4 billion in 2021, which is up from $707 million in 2010 and $5.4 billion last year, according to the report by Digital TV Research.
"Smartphone users will continue to drive OTT TV & video audiences," said Simon Murray, principal analyst at Digital TV Research. "Smartphones are a more important OTT TV reception method than fixed broadband in the Asia Pacific region, with the notable exceptions of Australia and New Zealand.”
Source: Digital TV Research
Advertising on OTT sites will remain the main driver for revenues. The report estimated that ad revenues would bring $8.7 billion by 2021, compared to $2.6 billion last year. China will account close to $5 billion of that 2021 total while Japan will chip in an additional $1.5 billion.
China will also be a driving force for SDVoD revenues, according to the report. SVOD revenues were projected to grow from almost $2 billion last year to $6.4 billion in 2020. China will supply $5 billion of the 2021 total while Japan will provide $1.5 billion.
Download-to-own/electronic sell-through movie and TV revenues are forecast to reach $1.90 billion in 2021 (with $692 million from Japan), up from $691 million in 2015. OTT TV and video rental will climb to $1.30 billion in 2021.
— Mike Robuck, editor, Telco Transformation