Global SVOD subs on track to hit 428M by 2021

By Jim O'Neill on Dec 12 2016 at 7:30 AM
Global SVOD subs on track to hit 428M by 2021

Global SVOD revenues are expected to grow nearly 61% to $32.18 billion in 2021 from $20 billion in 2015, a whopping 18X the $1.74 billion seen in 2010, with the APAC region being a key growth driver.

That revenue growth is reflected in strong consumer uptake globally, as the number of SVOD homes is forecast to reach 428 million, up from 248 million at the end of this year and 177 million in 2015, according to Digital TV Research’s Global SVOD Forecasts report.

DTVR forecasts Netflix to remain the largest single service, with subscribers increasing to 117.8 million by 2021 from 70.8 million in 2015 (with the number of international customers exceeding U.S. customers by 2018), followed by Amazon at 69.2 million from an estimated 33.5 million in 2015. Digital TV Research estimates 60% of Amazon Prime subscribers watch video, so half the Prime subscription fee for these subs has been allocated to video.

Subscription revenues for Netflix, meanwhile, are expected to double from $6.37 billion in 2015 to $13.14 billion in 2021, with 52% of those revenues coming from North America.

Much of Netflix’s international growth is being facilitated by distribution partnerships with approximately 79 pay TV, telco or mobile operators across 44 countries.

“These partnerships include multinational deals with Liberty Global, Millicom/Tigo and Telia,” said Simon Murray, principal analyst at Digital TV Research.

But the real growth – exceeding 230% -- will come from “other” services around the globe, many of them in the APAC region and many of those already pursuing a strong mobile strategy.

Many of the countries in the APAC region already are outpacing more mature markets in terms of mobile penetration as robust mobile networks are easier and less expensive to deploy that wired networks in much of the region.

The U.S. (127 million subscribers by 2021) will remain the SVOD market leader by some distance, although China (74 million in 2021 – up by 34 million on 2016) will record strong growth to close the gap.

“North America supplies most of these subscribers at present, but Asia Pacific will become the top region by 2019,” Murray said. “This comes despite Netflix being unlikely to secure direct access in China and only making a limited impact in other major population centers such as India and Indonesia. There are some large SVOD platforms in Asia Pacific that have been active for some time.”

Stay tuned.

Follow me on Twitter @JimONeillMedia and on LinkedIn

Posted in: 


SVOD, Content, Live sports
Original content, sports to push SVOD revenue to $120B by 2022
Dec 13 2017 9:00 AM

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.

LatAM, SVOD, Mobile
Latin America seeing golden age of TV in form of SVOD
Aug 22 2017 7:30 AM

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.

SVOD, Pay TV, Millennials, Cord Cutting
Q2 likely to be miserable as operators brace for big customer losses; OTT anyone?
Jul 24 2017 3:00 PM

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.

SVOD, Operators, Netflix
Should European operators worry about cord cutting as Amazon, Netflix push deeper into their market? Absolutely
May 25 2017 8:15 AM

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.