Eastern European OTT revenues to triple

Aug. 20, 2018
According to Digital TV Research, over-the-top (OTT) TV episode and movie revenues for 22 Eastern European countries will reach $3.51 billion ...

According to Digital TV Research, over-the-top (OTT) TV episode and movie revenues for 22 Eastern European countries will reach $3.51 billion in 2023, more than triple the $1.01 billion recorded in 2017.

Russia is expected to account for 40% of the region's OTT revenues by 2023, with Poland generating a further 23%. From the $2.495 billion additional revenues between 2017 and 2023, Russia is expected to provide $994 million, with Poland bringing in a further $537 million.

Simon Murray, principal analyst at Digital TV Research, said: "We believe that Russia will achieve this growth with little help from international players. Foreign ownership restrictions on OTT platforms limit companies such as Netflix and Amazon Prime Video. Luckily for Russia, there are plenty of home-grown platforms."

Subscription-based VOD (SVOD) became the region's largest OTT revenue source in 2017. SVOD revenues are expected to reach $2.25 billion by 2023 (64% of total OTT revenues), up from $515 million in 2017 (51% of total OTT revenues).

Russia is expected to overtake Poland to become the SVOD revenue leader in 2018. Russia's SVOD revenues are expected to reach $766 million by 2023, 34% of the regional total. Poland is expected to provide another $598 million (27%). The two countries' joint share is expected to fall from 68% in 2017 because of strong take-up in other countries.

The research house estimates 22.1 million SVOD subscribers by 2023, triple the 7.1 million recorded by end-2017. From the 15 million additional subscribers, Russia is expected to generate 5 million and Poland nearly 4 million.

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