• by Wayne Friedman , October 12, 2011

Big business awaits as TV content owners worldwide increasingly move online during the next five years.

Global online TV and video revenues will grow five times their current size to reach $21.52 billion in 2016 from $3.48 billion in 2010, according to London-based media research company Digital TV Research.

One big mover will be so-called "Over-The-Top" (OTT) alternative TV/video providers that use the Internet to act like terrestrial cable operators and/or satellite programming services.

The report says: “The OTT television and video sector is on the brink of a huge take-off as the key players expand internationally, companies consolidat[ing] (with Hulu about to be sold to one of existing major players) and as new partnerships are announced on a daily basis.”

Skyrocketing growth will also result as more global homes watch TV and video via the internet. By 2016, 415 million homes in 40 countries will watch online television and video, up from 177 million in 2010.

The report says the U.S. will continue to have the dominant share of the market -- now 54%, but dropping to 36%. But online TV/video revenues will grow four times their current size to $7.7 billion in five years, from $1.9 billion in 2010. China will have even more rapid growth -- leaping to $1.4 billion in 2016 from $50 million in 2010.

In five years, worldwide online advertising sales for TV/video programming will grow to $9.8 billion from $2.2 billion. But subscription fees will climb at a faster pace, rising to $5.6 billion from $626 million in 2010. Advertising share of the online business for TV/video is projected to drop to 46% from 63%.

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