The uptake of subscription video on demand (SVoD) services in China will rise to 28.3 million users, generating over $1.2 billion and accounting for 6% of overall pay TV revenue by 2016, Pyramid Research said in a new report.
This development goes hand in hand with the growing number of fiber broadband connections, which is projected to nearly double from 66 million in 2014 to 117 million in 2016.
According to Pyramid Research, the main attractionsof OTT video services in China are exclusive access to a wide range of content, multi-screen access, and subscription plans priced at rates similar to basic cable TV fees.
In China, OTT players LeTV and PPTV now broadcast more English Premier League (EPL) games in China than traditional free-to-air (FTA) platforms.
In the 2014-2015 season, the owner of EPL games in China, Super Sports Media Group, raised the annual fee for EPL games from $1 million to $11 million.
“As FTA platforms find it more challenging to pinpoint sports viewers to shore up advertisement revenue, OTT players will seek further differentiation with premium sports, which can be as valuable as extensive film and television libraries,” said Hansang He, analyst at Pyramid Research.