Over-the-Top Revenues to Reach $20 Billion in 2016

SCOTTSDALE, AZ - The number of online video viewers worldwide is expected to surpass 1.3 billion by 2016, from a 2010 base of 780 million, according to new research from ABI Research. As more consumers look to their broadband connections for content, the over-the-top (OTT) video industry will also grow, with companies such as Netflix, Hulu and Apple’s iTunes division aiming to capitalize on this market trend. Total revenues for the OTT market - including subscription, advertising, pay-per-view and purchase - will reach $20 billion.

According to ABI, Netflix is the current leader in OTT revenues; it has led consumers to embrace long-form broadband video and has support from nearly every smart-TV platform. iTunes and Hulu each represent about 15 percent of the OTT market. Over time, more viewing of YouTube and historically Internet-based platforms will shift to the living room, opening up significant advertising revenues. This trend will be accelerated based on YouTube’s recently announced increase in VOD content.