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SVOD, original content
Original content, sports to push SVOD revenue to $120B by 2022
Wednesday, December 13, 2017

New research posits that global revenue from subscription video on-demand (SVOD) will increase 88% to more than $120 billion in 2022, up from an estimated $64 billion this year.

The report from Juniper Research also says more than 25% of all global households will have at least one SVDO subscription in five years.

Much of the growth will come as viewers continue to be drawn to the burgeoning raft of original content being produced by SVOD heavyweights like Netflix and Amazon which between them likely will produce in excess of $12.5 billion in content in 2018.

But the two streamers aren’t alone. HBO is expected to spend more than $2 billion in content, the BBC $1.4 billion and Apple and Facebook another $1 billion each as the global content race continues unabated.

The surge of content isn’t likely to be just new dramas, of course, live sporting events will play a significant role in attracting – and keeping – viewers for some SVOD services.

Facebook recently missed the mark with a $600 million bid for rights to Indian Premier League (IPL) cricket, which Star India nabbed for $2.5 billion for streaming rights the next five years – a huge get just seven years after YouTube first streamed all 60 IPL games from the 2010 season.

Looking to increases its own share of the SVOD pie, wireless operator Verizon this month sealed a $2.25 billion deal with the NFL to start streaming Sunday, Monday and Thursday Night Football games, playoff games, the Super Bowl and related content across all of its digital properties including Yahoo, Yahoo Sports, AOL properties and Verizon’s Go90 mobile platform which, combined it says, reach more than 200 million viewers monthly.

While OTT plays for live sporting events often are seen as a threat to broadcasters, they can also be leveraged by broadcasters as an additional means of delivery to an audience that increasingly moving away from traditional broadcast and pay-TV delivery: Millennials and Gen Edge viewers.

Jim O’Neill is Principal Analyst and Strategic Media Consultant for Ooyala. You can follow him on Twitter @JimONeillMedia and on LinkedIn

Jim O'Neill

An award-winning industry expert and futurist who specializes in the convergence of traditional TV and the Internet. My focus includes pay TV, Cloud TV, OTT, multiplatform media delivery, the ecosystem that surrounds it and consumer trends. A frequent speaker at CES, NAB, Digital Hollywood, Park’s Associates Connections events, Streaming Media and Digital Entertainment World, among others. I'm the Editor of Videomind, which in the past year has won awards from Editor & Publisher and Digiday. I'm also the Principal Analyst at Ooyala. I'm based in Michigan. I formerly was an analyst at Parks Associates and editor of FierceOnlineVideo and FierceIPTV. 

You can follow on Twitter @JimONeillMedia and on Linkedin