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OTT Video in Nearly 50% of Global Households by 2020

9 Sep, 2014 By: Erik Gruenwedel

In what can only be music to the ears of Netflix, Amazon Prime Instant Video and other subscription streaming services, over-the-top video is projected to reach half of all TV households globally by 2020.

The number of households watching online TV and video (over fixed broadband networks) will top 706 million in 2020, up from nearly 197 million in 2010 and 374 million projected this year, according to a new report from Digital TV Research.

The fastest-growing OTT region is Asia Pacific, which will add 231 million streaming homes between 2013 and 2020 — or 61% of all worldwide additions. China will add 140 million OTT households, taking its 2020 total to 206 million — more than Europe. Indeed, China is forecast to overtake the United States this year.

By 2020, 48% of the world’s TV households will view online television and video, up from 15% in 2010. South Korea (79.8%) will have the highest proportion by country by 2020, with India (21.9%) at the lower end of the scale.

More importantly, Digital TV Research forecasts 199 million subscription streaming subscribers by 2020, up from 21 million in 2010 and an expected 83 million by end of the year. North America’s share of the total will fall from 80% in 2010 to 57% in 2014 and onto 34% in 2020 — revealing how much the sector will grow outside the U.S. However, the U.S. will contribute 62 million of the 2020 total, with runner-up Japan at 20 million subs.

By 2020, 13% of the world’s TV households will subscribe to a SVOD package, up from only 1.6% in 2010 and an expected 6.1% by the end of 2014. The proportion in 2020 will vary from 50% in the U.S. and 48.5% in Sweden to 2% in India and Vietnam. Ten countries will have SVOD penetration in excess of a third of TV households by 2020.

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