The global market for online video will be worth US$37 billion by 2017, but only a few companies are really benefitting from the growth if the sector, according to a new report from Informa Telecoms and Media.
The analyst firm predicts that video services delivered online will account for 8% of total TV and video revenues by the same date, rising to 10% by the end of the decade.
"Online video...is attracting real, and growing, revenues. But this value is concentrated around a select few players," said Giles Cottle, principal analyst at Informa.
"We estimate that Apple, Google, Netflix and the global broadcasters (including Hulu) combined account for about 70% of all online video revenue today," he added. "If you aren't one of these players, then the chances are you aren't making a great deal of money from online delivery."
There are three main revenue streams in online video: advertising, subscriptions and transactions. Advertising currently generates more revenue than subscriptions and will continue to do so throughout the forecast period, Informa predicts. Its forecasts do not include revenue from managed video-on-demand services offered by operators or TV Everywhere services, where subscribers do not explicating play for the online part of the service.
"The big change to the OTT revenue mix will come when operators start to offer not just low-cost online services, like Sky's Now TV, but stand-alone online versions of their services that come close, in terms of content availability and price, to their core pay TV services today," Cottle predicted.
"Even very modest take-up of these services will completely distort the online video market," he said.
The U.S. will account for 50%-60% of online video revenues in 2017, down from 75% today, as Europe and Asia experience more rapid growth.