The global OTT TV market is booming,according to the research,it estimates that global OTT TV and video revenues will add more than $35.4 billion and reach $64.78 billion in 2021,up 120% from 2015,a massive increase from $29.41 billion in 2015,average growth rate of 18% per annum.From the $35.37 billion extra revenues between 2015 and 2021, Asia Pacific will contribute $12.65 billion,220% in APAC to $18.4 billion from $5.74 billion.AVOD to overtake SVOD in revenue by 2020.Online TV and video advertising has been boosted in recent years by the rapid growth in mobile advertising. Fast growth will continue,reach a global total of $26.96 billion in 2021.Around $500 billion of annual revenues,content production accounts for around $240 billion of that. This is paid for by fees that come from multichannel pay TV subscriptions (also around $240 billion in 2015) plus advertising, public sector funding and licence fees.The US will remain the dominant territory for online TV and video revenues which will rise by $8.24 billion to $22.82 billion between 2015 and 2021.China will add a further $6.24 billion, with its total revenues nearly quintupling over the period to give it second place.SVOD is expected to see rapid growth through 2018, eclipsing ad-supported video in the market and seeing the number of SVOD subs more than double to 383 million from 163 million in 2015,SVOD will become the largest revenue source by 2018, but AVOD will regain top position by 2020. SVOD will add $14.58 billion in revenues between 2015 and 2021, with AVOD up by even more ($15.37 billion).There were 159 million SVOD subscriptions globally at the end of 2015,and expects this to more than double to 383 million by 2021.SVOD revenues will soar from $11.13 billion in 2015 to $25.71 billion in 2021. This means that SVOD will contribute 40% of total OTT revenues in 2021; From the 220 million SVOD additions between 2015 and 2021, 107 million will be in the Asia Pacific region.Mobile SVOD is growing rapidly in Asia.

Asia,undoubtedly is a highly potential video streaming market. As with the booming technology and the internet penetration of 40.2%, it has peaked in $2,490 million revenue for the year 2016 and is expected to touch US $5,017 million by 2020.According to a study, the percentage of internet users who watched online video content on any device was pretty high in Asian countries namely South Korea 95.9%, China 89.6%, India 84.1% and Japan 73.6%. No doubt, online video consumption is one of the most popular internet activities worldwide.
Internet penetration in Asia was about 40.2% in 2015 which indicates that the user engagement provides wide space for video streaming businesses to grow.
Asia, is by far the biggest market in the world. China, India, and Japan alone host more Internet users than Europe and North America combined.
The value of online video sector in Asia Pacific is set to swell from an estimated $13 billion this year to $35 billion by 2021. This is a growth rate of 22%.
The online subscription video-on-demand (SVoD) segment,total paying customers are expected to grow from US $177 million in 2016 to US $360 million by 2021, with China representing the majority share. SVoD revenues are expected to reach US $13 billion by 2021, a 28% CAGR from US $3.7 billion in 2016. China will again contribute the majority, representing more than 80% by 2021.
Online video advertising sales will reach approximately $22 billion by 2021 versus $9 billion in 2016, with a 19% CAGR. China will represent more than 70% of the online video advertising pie by 2021.This will also help online video advertising to grow as a proportion of Asia Pacific digital ad spend from less than 15% in 2015 to 22% by 2021.
Asia Pacific's fixed broadband subs already reach 345 million in 2016, and will grow to 425 million by 2021. Average broadband household penetration will grow from 35% in 2016 to 41% in 2021. Mobile broadband to reach 79% of the Asia Pacific population by 2021, versus 46% in 2016.Check our video for a quick overview of OTT Video market in Asia.
There is no doubt that mobility has played a crucial role in contributing towards online video consumption and has also made it easier for viewers to go online and access content. Video consumption largely depends upon the device adoption and viewing habits that actually differ from region to region.

China's SARFT released no 6 order to further improve the entire new media television service regulatory system,take OTT TV and IPTV into the same regulatory framework,the entire OTT TV large screen will be in the state strict control, the purpose is the controllable and rights protection,clean away all the illegal software and watch way is beneficial for the legal companies in the industry chain,the industry business model rapid formation and monetization model exploration.

China's TV industry is currently the formation of the cable / IPTV / Internet TV parallel development structure,OTT TV will become the core of the entire television industry eventually for the long term.

OTT TV has a high-dimensional industrial form,it is the fundamental difference with the cable network / telecos network of these two exclusive transmission channels,relying on the internet, the global network, the connection can not be completely controlled by a country or enterprise groups through technical approach.OTT TV has a more open content ecology,any industry players can be the content providers or operating platform, so attracts the BAT giant's annual capital investment with tens of billions RMB, the convergence of talent is also higher,industry chain relationship is more simple and pure,the user get content through the internet terminal directly, in addition to the public network without the need for other transmission media network,with the most leading experience,it is the TV's "first screen" and iterative upgrades fast, users can watch anything on demand content. These factors determine the OTT TV will become the ultimate form of the television industry eventually, we are convinced that China's 440 million households will become OTT TV users.

Whether PC mobile TV internet, or even the future VR ecology, are followed by a mature path,the first is the emergence of the hardware,then with the number of hardware terminals heavy volume, the industry chain accumulated users with operation value gradually, business model has become embryonic around the hardware and underlying content form,the content ecology continues to flourish, income scale began to grow rapidly, while the terminal channel began to obtain content distribution value. After the 2012 to 13 years of the hardware form imported, and 2014 ~ 2015 heavy volume hardware terminal, the number of OTT TV users entered the inflection point, the industrial chain officially entered the initial stage of prosperity.

The corresponding market space of the end user operation is expected to reach 30-40 billion RMB. Game,education,e-commerce business will gradually mature after the video, as a single platform user value calculation, the corresponding leading user operation market space is expected to close to tens of billions RMB.We assume that the leading manufacturers reach 50 million units activation terminal,150-200 RMB ARPU value for each terminal,the corresponding value is7.5 to 10 billion RMB.

The prosperity of content ecology is the foundation of the OTT TV industry chain rapid development.Content is the basis of industry development,industry revenue growth can not be separated from the content ecology prosperity. The emergence of OTT TV, make the living room large screen can also be free to watch the rich internet content, the user from the PC, PAD, mobile phone side back to the living room. The current average OTT TV daily operating rate is 56%, active users daily use time has been as high as 4.9 hours / day. Such an active use of frequency and duration,there must be more and more high-quality content to provide support behind.Giant content investment entered into the big cycle inflection point,promte industry change from quantity to quality.
2015, the major video sites have already invested heavily in copyright, home-made content, 2016,Tencent and iqiyi invested content and copyright 5 billion RMB, only two giants exceeded 10 billion level. however in 2014, the entire radio and television industry investment of TV drama is only about 10 billion RMB. These data indicate that internet giant has officially exceeded the traditional radio and television system for the content investment.

With the industry more clear business model, the high-quality companies emerge in sub-areas and service providers, which is the sign of the industry chain value began to release.In addition to advertising, video on demand / SMD advertising model has begun to mature ,OTT TV industry income scale outbreak growth trend is clear. It is expected that the entire connected tv ecosystem will have a potential market value of nearly 9 billion RMB in 2016,the terminal platform income potential scale is over 3 billion RMB. Video ecology is expected to take the lead in mature, boot advertising, placement advertising, video-on-demand and so is the current mature monetization approach, thepotential value will be more than 30 billion RMB in 2018.

Living room ecology usher in the times of monetization.

OTT TV reach heavy volume fast, user penetration rate exceeded 10%. 2014 is the first year of OTT TV heavy-volume sales, when the smart TV sales penetration penetration rate exceeded more than 50%, the industry total stock of nearly 30 million units, the stock user penetration rate reach 5%. In 2015, smart TV penetration rate reached more than 70%, OTT TV users exceeded over 50 million, penetration rate step over the key points 10%, the single leading companies activated terminal number was nearly 15 million units, average daily active users was close to 10 million,reach the scale operation starting point.

With the traditional TV commercials and the market value transfer, as well as some emerging formats mature quickly, nearly 150 billion RMB market value will transfer and release first from the OTT TV industry chain. The value transferred from the traditional TV industry chain includes the transfer of traditional TV commercials: in 2015, the scale of TV commercials in the broadcasting and TV system is close to 110 billion RMB, the content and ratings of the CCTV and provincial TV stations are still strong, provincial capitals and other prefecture-level TV stations continued to decline in competitiveness, which accounted for 62% of the part, that means 68 billion RMB of advertising value will start to transfer from boot advertising, video advertising to OTT TV. The transfer of the traditional cable TV subscription fee: In 2015, the cable TV subscription fee scale was more than 50 billion RMB, assuming half of the interim transfer to the OTT TV, corresponding market value is about 25 billion RMB.

Besides the traditional TV industry chain value transfer, OTT TV create a film-on-demand and other emerging payment ecology at the same time, the future of the market space is promising as well.Refer to the income structure of the US film industry, the Chinese window revenue post tehaters(including cable TV pay channels, pay-on-demand, PPV / VOD VOD, etc.) is the same as USA.Then suppose that the future of the Chinese film industry box office revenue is more than 100 billion RMB, while the cinema after the window revenue and box office revenue consistent, and assuming 50% of them are from the large screen to watch, then a part of the market value is close to 50 billion RMB in future.

We are convinced that OTT TV market space is nearly trillion RMB in the long term.

Video business market size is expected to reach 3000-500 billion RMB (including advertising and content-based services). China's traditional TV industry market size is nearly 200 billion RMB, including 110 billion RMB of traditional television advertising and 60 billion RMB of cable television service business. With the rich OTT TV content and the rising consumer spending habits, China's TV industry's market space has great potential for development. With reference to the development of the US television industry, only TV advertising revenue accounted for 0.4% of US GDP, assuming that China's 2020 GDP of 90 trillion (government target in the work report) 0.4% of advertising revenue, the part of the business market space is up to 3000 ~ 400 billion RMB.

Video games and applications business total market size is expected to be more than 50 billion RMB level. Video games: the current global video game market size is 30 billion US dollars,the pay game market size is 20 billion US dollars after removal of hardware sales, accounting for the size of the global game industry, the proportion is about 20%. According to research, the scale of China's game industry will exceed 200 billion RMB (110.8 billion RMB in 2014), assuming after 3 to 5 years video game development, accounting for 10 ~ 15%, the market size is expected to reach 200 to 300 billion RMB. Other types of applications and derivative advertising business: such as online education, music (including live concerts, etc.), social-derived ecology in the mature large-screen, estimated single market size will exceed 10 billion RMB level.

TV-side shopping market, the size of a conservative estimate will reach 3000 to 500 billion RMB.China's online shopping market in 2014 reached 2.8 trillion RMB, the growth rate is 50%,according to forecasts,China's online shopping market is expected to more than 7 trillion RMB, with the maturity of the TV payment system and the user's habits transfer, assuming that the TV shopping market in China is about 5% in future, the market size is expected to reach 3000 to 500 billion RMB.

India is the market where the consumer is spoilt for choices. Indian Entertainment industry is known to be the world's biggest content producer (Movies, TV Shows, Short Format, Sports, News, etc.) and due to this, there are many big and small Video Streaming Platforms catering to each and every need.From broad based platforms like HotStar which is run by Star India,one of the biggest Broadcasters in India,comprising of Movies, TV Shows, Live Sports Streaming, as well as original content produced by themselves, to niche platforms like Cineplay, which is an On-demand platform for Theatre content, Indian consumer has multiple options of choosing a platform catering to their needs.
The overall revenue in the Video on Demand segment amounts to US $213.8 million in 2016, and is expected to show an average annual growth rate (CAGR 2016-2020) of 16.84% resulting in a market volume of US $398.4 million in 2020.
The average user penetration (consuming streaming video) in the region is 3.51% with an average revenue per user (ARPU) of US $6.53/user in 2016 and the penetration to hit 6.19% in 2020.
It's also not about just choices, the Indian consumer is also spoilt when it comes to pricing and just as India saw a telecom war on voice and data pricing, there is a similar battle going on for digital content and there is just one clear winner.India's 1.2 Billion+ strong population, which sees a mobile penetration ratio of over 80% and internet penetration of just under 35%, clearly indicating the huge scope, gap and potential that is up for grabs for the right provider!

Video streaming is exponential in South Korea. For example they have this interesting and popular streaming platform called Afreeca TV that caters to solo diners and enables them to watch live streams of jockeys eating in front of their own cameras. These jockeys then stick to these solo diners and appeal to the increasing number of solo diners in the country!
As per stats, the overall revenue in "Video-on-Demand" segment in South Korea amounts to US $324.6 million in 2016 and this revenue is expected to show an annual growth rate (CAGR 2016-2020) of 25.17% resulting in a market volume of US $796.7 million in 2020.
The user penetration itself is at 12.93% in 2016 and is expected to hit 25.34% in 2020. With the ARPU currently amounting to US $57.44 / user and overall internet penetration at 85.7%, maturity of the South Korean video streaming market is quite evident.A survey found that male online users between the age group of 15 and 24 spent 4,229.8 minutes on online videos per month.

Japan by far is the leader in Online Video in Asia and its overall revenue from the "Video-on-Demand" segment amounts to US $611.1 million in 2016, which is expected to show an annual growth rate (CAGR 2016-2020) of 24.69% resulting in market volume of US $1,477.1 million in 2020.
The overall user penetration is noted at 14.95% in 2016 and is expected to hit 19.21% in 2020 with an average ARPU of US $19.21 / user (Source). The overall internet penetration in Japan is at 91.1% indicating that Japan is slowly but steadily growing bigger when it comes to the video streaming industry.

Southeast Asia is the next big destination for video streaming services. Hollywood studios are proposing major tie ups with streaming start-ups in South East Asia, which would certainly result in their audiences increasing radically.
Influx, which is available in Philippines and Thailand with Indonesia, Sri Lanka and Vietnam queued up forlaunches.
Another leading VOD Platform in Asia is HOOQ, a joint venture between Warner, Sony and Singtel group.
HOOQ was launched in January of 2015, and has been live in various markets since March 2015, such as the Philippines, Thailand, Indonesia and India.
HOOQ is already the #1 paid video OTT service in Philippines with over 100,000 paying subscribers. It has also been making inroads in all markets it has launched with its partnerships either with studios or with Telco's to bring the platform and huge library of regional + Hollywood content to its subscribers.
The overall revenue in Video on Demand segment amounts to US $395.1 million in 2016, which is expected to show an average annual growth rate (CAGR 2016-2020) of 13.60% resulting in US $645.90 million market volume in 2020.
The average user penetration (consuming streaming video) in the region is noted 8.60% with an average revenue per user (ARPU) of US $19.60/user in 2016 and is expected to hit 15.20% by 2020.
With the overall internet penetration of 82.5% in Singapore, 68.6% in Malaysia, 43.5% in Philippines, 55.9% in Thailand, 50.1% in Vietnam and 20.4% in Indonesia, one can definitely say that internet consumption is only going to increase exponentially in Southeast Asia, providing a greater scope for video streaming.

Video streaming is definitely taking Asia by storm. With the whole of Asia combined, it's already the biggest population of online internet users in the world and this is just with an average internet penetration of about 40.2%. The potential to grow in this market is substantial, in terms of both users as well as revenue, and it seems like global as well as regional players are gearing up for this battle. Global Players may bank on their heavy Hollywood library and content that they bring to this region, which typically a regional player doesn't have good access to, but a regional player is well in-tune with the market's expectations and content their audience is looking for and has the flexibility of setting a price point without having to worry too much about maintaining a "global pricing balance".

Key Features
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Understand the economics of OTT TV in the region
Learn what investors need to make a project bankable
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Assess new technologies in DRM,SDV,encoding,transcoding
Assess the market opportunities for smart TV TV game and
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