Report: China Will Overtake Japan in 2016 as OTT Market Leader

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.”

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