Global online video revenues to hit $35 billion by 2018

October 21, 2013 - 5:34pm
Potential sources of revenue will continue to rise in the online video transport market.

A recent report from Digital TV Research found that revenues in the online TV and video market will continue to soar, with global earnings projected to reach $35 billion by 2018. This represents a massive jump from the $15.94 billion forecasted in 2013 and the $3.98 billion generated in 2010. The variety of different revenue opportunities available in this accelerating market offer network operators and service providers many avenues through which to profit, provided they upgrade their video transport infrastructure to deliver optimal quality over fixed broadband networks.

The report found that 520 million homes across 40 countries will watch television programs and videos online by 2018, a substantial jump from 182 million households in 2010. Several over-the-top (OTT) options will drive this growth. While online video delivery based in traditional models such as pay-per-view, online video rental and download-to-own purchase will generate revenue rises, the real gains are to be found in subscription services and ad-supported video viewing. Subscription services revenue is projected to climb to nearly $13 billion in 2018 from $6 billion in 2013, while advertising will generate $7.4 billion in 2013 and $16.4 billion in 2018.

In order to capitalize on these projected profits, content and network providers will need infrastructure to optimize online programming delivery, including IP video turn-around distribution and digital ad insertion. Video transcoder solutions allow these operators to compress video to low bitrates and reduce bandwidth usage while transcoding up to 16 SD or HD channels, including MPEG-2 and H.264. As online and OTT video continue to occupy a larger portion of the overall video landscape, networks and advertisers will increasingly pursue converged, multichannel platforms, making it essential that system operators can maintain video quality and mitigate latency for content in any form.

Sencore provides reliable, cost-effective solutions for signal transmission and content delivery. As network infrastructure continues to diversify and multichannel distribution becomes mission-critical, next-gen video transport solutions will be key to preparing systems for the challenges - and potential profits - ahead. Contact us today to learn more.

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Video Transcoding
Digital Turn Around