U.S. operators of over-the-top services will generate nearly $28.8 billion in subscription and advertising revenue this year, up about 26% from 2017, according to a new report from Digital TV Research.
Not surprisingly, much of that revenue growth will come from Netflix, which is forecast to grow revenue from around $11.7 billion in 2017 to about $15.8 billion this year.
By 2023, Digital TV Research projects that U.S. OTT revenue will reach $47.8 billion.
Globally, the research company forecasts OTT revenue to grow by 30% to $69 billion in 2018, spiking to $129 billion by 2023.
Subscription video on demand services including Netflix, Hulu and Amazon Prime Video will see their total global revenue increase from $44 billion in 2017 to $69 billion by 2023, the research firm also predicted.
Advertising-based video on demand services (AVOD) like YouTube, meanwhile, will see total global revenue increase by 36% from 2017-2023 to $47 billion.