What will happen to the SVOD market in 2019?

Subscription Video On Demand (SVOD) is growing strongly across the world according to two leading research companies who have looked at the market. Digital TV Research said SVOD revenues across 138 countries will reach $35.04 billion in 2018. That’s $10 billion more than the 2017 total and more than triple the 2015 total. Further rapid expansion is predicted in 2019, according to Ampere Analysis.

Subscription Video On Demand (SVOD) is growing strongly
Subscription Video On Demand (SVOD) is growing strongly
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Digital TV Research latest report on the market expects 474 million SVOD subscriptions globally by end-2018. This is up by 108 million from a year earlier and up by 304 million on the end-2015 total.

US is the top earning country. However, its influence is diminishing as other countries start to catch-up. The US contributed 56% of the global revenues in 2015, but this proportion will fall to 48% in 2018. However, the US will add more than $10 billion in revenues over this period.

Europe will have 262 million TV subscriptions by the end of 2018; up from 205 million at end-2015. Western Europe has had the most growth. SVOD subscriptions will triple between 2015 and 2018 to 76 million, but traditional pay TV will only add 8 million subscribers to total 186 million. This means that SVOD’s share of the total will climb from 13% to 29% between 2015 and 2018.

Ampere Analysis latest report states that China is set to have almost double the number of subscription video on demand (SVOD) subscribers of the US by 2019. China will have 305 million SV0D subscriptions at the end of 2019, compared to 158 million in the US. Revenue generated from SVOD subscriptions in China will be below half of that in the US, however, reaching $8.9 billion in China and $20.4 billion in the US.

Posted by Chris Dickinson, technology journalist and editor of the Always On blog. December 6, 2018.

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