SVOD Subscriptions Will Double Between 2017 and 2023: Forecast
Global streaming video on-demand (SVOD) subscriptions will grow at an explosive rate, forecasts London-based Digital TV Research. In fact, SVODs will grow much faster than pay TV services.
By the end of 2017, there were 366 million SVOD subs globally, and that will grow to 777 million by the end of 2023. While a larger area, pay TV services will see far slower growth. Pay TV had 1 billion subs at the end of 2017, and will have 1.1 billion at the end of 2023. In all, Digital TV Research says, global pay TV will add 94 million subscribers in that period.
Both areas combined will have 1.9 billion subscriptions by the end of 2023.
Breaking those numbers down, the U.S. will count 289 million total subs by 2023. Pay TV subs are falling in the U.S., and will decrease to 80 million (down by 10 million). SVODs will grow from 132 million subs to 208 million, with many households having multiple subscriptions.
The country adding the most subscriptions will be China, which will add 171 million subs in this period for a total of 610 pay TV and SVOD subs by 2023. There also, SVOD subs will grow at a faster rate than pay TV subs.
Look for SVOD revenues to grow to $69 billion by 2023, when SVOD will make up 27 percent of all TV subscription revenue.
"Netflix will add 82 million subs to take its total to 192 million, says Simon Murray, principal analyst at Digital TV Research. "Amazon Prime Video will increase by 57 million to 120 million. However, only 10 million of the 2023 total will directly pay for video, with the rest receiving it via their Amazon Prime subscription."
This data comes from Digital TV Research's TV Forecasts report, available for purchase.
BARB's best guess of growing SVOD viewing habits is that Netflix, Amazon, and Sky Now are the cause, accounting for 19% of total activity in 2018
Netflix may have conquered the world, but it's a minor player in Asia, says Digital TV Research. Tencent and iQiyi, and Youku Tudou are the area's biggest services.
The shift in viewing habits will have strong implications: People spend less time watching broadcast content which means less money for new productions.
Think everyone receives at least one subscription video service? Think again. A sizable amount aren't willing to pay for even one SVOD.