MUMBAI: SNL Kagan’s Multimedia Research Group (MRG) is predicting the OTT SVOD market to record significant growth worldwide in the coming years, with North America leading the pack, followed by Western Europe.

MRG predicts that revenues will reach nearly $8 billion on more than 120 million subscribers globally by 2017. North America, which has more than 25 OTT SVOD service providers as of 2013, is the most developed market. Subs are estimated to have increased by more than 50 per cent in 2012, reaching nearly 50 million.

North America is followed by Western Europe. Last year, Western Europe accounted for 11 per cent of the worldwide market with 7 million subscriptions and annual revenue of $575 million. Asia, which has the largest internet population in the world, accounted for nearly five million OTT SVOD subs in 2012 and $255 million in revenue.

Eastern Europe had seven per cent of the market in 2012 and more than four million subscribers and revenue of $253 million. The OTT SVOD service markets in Latin America, Asia and Eastern Europe collectively comprised 20 per cent of the worldwide subscribers in 2012. These regions are poised for immense growth in the next five years, according to MRG. The Middle East and Africa had a negligible share of the market last year. Though it is expected to grow in the coming years, its contribution will only increase to one percent by 2017.