Global SVOD revenues likely will top $35.04 billion in 2018, an increase of more than 40% since 2017’s $24.87 billion and 214% since the $11.16 billion in SVOD revenue during 2015, a new report says. The biggest gains have come in China, where SVOD revenues are projected to increase 708% to $3.709 billion in 2018, compared to $459 million in 2015.
With Netflix gaining so much ground globally, and a growing number of companies trying to get a piece of the pie, what will the OTT market look like in 5 years?
Let's go back in time 5 years to see how much the market has changed since then. In 2013:
Revenues from European subscription video on demand (SVOD) services are expected to nearly triple to $12.4 billion, easily bypassing the combined revenues of ad-based online videos (AVOD), download-to-own video (DTO) and online video rentals, according to a new report.
Almost two-thirds of mobile network operators (MNOs) worldwide already are offering a mobile video service as part of their portfolio, a reaction to the changing content-consumption habits of consumers, especially Millennials and Gen Edge.
Way back in 2011, just as Netflix was teething on the fingers of pay-TV operators, Amazon launched its own SVOD service, Prime Instant Video.
It largely was overlooked, already a latecomer behind Netflix and Hulu et al. But, in a column I wrote when I was editor of FierceOnlineVideo, I warned that the nascent service was as much – if not a bigger – threat to the pay-TV industry and Netflix than any of the other services.
Why? Amazon’s e-tail roots.
More research that shows the continuing adoption of SVOD services in the United States: 69% of all U.S. households now are subscribing to at least one over-the-top video service, up from just 52% in 2015. And, the survey counts just Netflix, Amazon Prime or Hulu, just more than 1% of the roughly 220 SVOD services available to U.S. consumers.
Subscription video on demand (SVOD) is growing on a global scale, nowhere more so than in APAC where users are expected to more than double by 2023 to more than 351 million.
Netflix is expected to be only the fourth largest service in terms of subscribers – at 24 million – behind a trio of Chinese services, Tencent (82 million subscribers), iQiyi (80 million subscribers) and Alibaba subsidiary Youku Tudou (33 million subscribers).
Revenue from subscription video on demand (SVOD) services now makes up 74% of the 1.1 billion euro video on demand (VOD) market in Germany, with the VOD market expected to more than double to 2.5 billion euros by 2023, a CAGR of some 14.5%. SVOD’s share is expected to rise to 80%, according to a new report.
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.
Globally, subscription video on-demand (SVOD) is on a rocket trajectory and Latin America is deeply in the mix. While Netflix, Amazon and Hulu have been the leaders of subscription video on-demand growth, an increasing array of subscription services – there are more than 100 in the U.S. and Canada alone – are seeing fast subscriber growth and adoption across demographic groups.
Could second quarter pay-TV subscriber losses in the United States top 1 million, the highest figure ever? In a word, yes.
The second quarter routinely is a weak one for operators and in the current environment – remember the first quarter saw more than 800,000 subscribers cut the cord, according to Kagan – reaching one million may be an easy task.
When the Big Two come to play in your backyard, it’s time to up your game.
Netflix and Amazon have launched a push into Europe that will likely result in some bad nights of sleep for operators, pay-TV channels and broadcasters looking themselves to do more business over the top.