OTT TV and video revenues in the Asia-Pacific region will jump to US $18.39 billion in 2021, from US $5.74 billion in 2015 and US $707 million in 2010, according to a report from Digital TV Research. China is expected to overtake Japan in 2016 to become the market leader in OTT TV and video services. The report also forecasts that smartphone users will continue to drive OTT TV and video audiences. Advertising on OTT sites is expected to remain the primary source of revenue, bringing in US $8.74 billion by 2021, up from US $2.6 billion in 2015. China will supply US $4.91 billion of the 2021 total, with Japan providing a further US $1.47 billion.

Tarifica’s Take

The forecast’s impressive figures give a clear indication that OTT services beyond VoIP calling and messaging will be ever-greater sources of revenue in the near future in one well-developed world region, fulfilling the ever-growing consumer demand for data-rich entertainment content. They also make it clear that mobile devices will be the primary conduits for this consumption. Content providers and mobile advertising providers will benefit tremendously from this trend. Asia-Pacific mobile operators should think carefully about how they, too, can profit from it, beyond simply the data-use revenues involved. Partnerships, exclusive if possible, with content providers represent one avenue for operators to pursue. Deals with advertising providers are another.