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Western Europe SVOD Market Tops €2B in 2015, Will Top €3B in 2016
While the U.K. is the biggest spender for subscription video-on-demand services, some smaller countries have high averages.

Spending on subscription video-on-demand (SVOD) services in Western Europe was greater than €2 billion in 2015, reports the market research company IHS Markit. That figure will grow to €3 billion by the end of 2016.

The biggest spender in the region is the U.K., which will generate over €1 billion in SVOD spending by the end of 2017. It makes up 35 percent of all Western European SVOD spending, a percent that will remain constant through 2020.

A few small markets produce big SVOD returns. The Nordic countries—Sweden, Norway, Denmark, and Finland—as well as Belgium, the Netherlands, and Switzerland, are outspending larger neighbors on SVOD services. For example, while Germany counted 26.9 million broadband households in 2015, Sweden had 3.2 million, and Norway had 2.1 million, the Nordic countries had far higher average SVOD spending. In Norway, the average broadband household spend on SVOD services was €89.46, while in Sweden it was €23.16. The German average was only €6.06.

By 2020, IHS predicts that Norway's SVOD spending will be €318.3 million, equivalent with Spain and Italy which have four times as many broadband-enabled households.

Netflix and Amazon's international expansion has played a large role in Western Europe's increased SVOD spending: “When Netflix launched in the U.K., total consumer spending on SVOD in Western Europe more than doubled to €307.6 million in 2012. By the end of 2014, that figure had more than trebled to €1.1 billion due to Netflix’s European expansion and the launch of Amazon Prime in the U.K., Germany, and Austria.”

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