According to the “Online TV and Video Forecasts” report from Digital TV Research, worldwide online television and video revenues over fixed broadband networks is projected to reach $34.99 billion in 2018. The projection marks a significant increase from the $3.98 billion recorded in 2010 and the $15.94 billion expected this year. The report predicts that 520 million homes in 40 countries will watch online TV and video by 2018.

“Simon Murray, principal analyst at Digital TV Research, said that the OTT TV sector was on the brink of a ‘huge’ take-off as the key players expand internationally, broadband penetration increases, technology advances and as new partnerships are announced on a daily basis,” reports Advanced Television.

Advertising has been the key driver for OTT growth. Revenues are expected to reach $7.4 billion this year, up from $2.4 billion in 2010. Advertising expenditure is projected to reach a global total of $16.4 billion in 2018. Digital TV Research suggests that the fastest growing paid-for OTT revenue stream will involve subscription services.

“Although the likes of Netflix and Hulu Plus are already reasonably well established as streaming subscription services in North America, international markets have been relatively untouched — until now,” notes the post.

“Online television and video subscription revenues (SVOD) are predicted to soar from $1 billion in 2010 to $6 billion in 2013 and onto $13 billion in 2018. The number of homes paying a monthly fee to receive SVOD packages will climb from 21.9 million in 2010 to 67.8 million by end-2013 and onto 160.6 million in 2018.”

In addition, a report from IHS Electronics & Media suggests that Ultra HD will be mainstream by 2020, with “140 million TV homes watching at least one Ultra HD channel, and more than 50 million Ultra HD set-top boxes installed,” reports Advanced Television in a related story.

“By 2020 there will be over 200 Ultra HD channels worldwide, rising to over 1,000 by 2025,” says the IHS report’s author Tom Morrod. “The availability of Ultra HD TVs in the home and Ultra HD services by pay TV operators with advanced set-top boxes will drive the commercial opportunity for channel launches and content production.”