The SVOD market will grow rapidly in next five years

The global subscription video on demand market is expected to grow rapidly in the next five years. Learn why this proliferation is expected in our latest post, here.

The SVOD market will grow rapidly in next five years
The SVOD market will grow rapidly in next five years

The global subscription video on demand (SVOD) market is expected to grow rapidly in the next five years, led by high-speed internet and 5G delivery. According to Statista, it is estimated that SVOD revenue worldwide in 2020 will be USD 22.22bn, with SVOD subscriber numbers reaching 568.4 million worldwide. Meanwhile, Technavio estimates that subscription VOD services will post a compound annual growth rate (CAGR) of over 11% during the period 2019-2023.

SVOD services charge users a monthly fee in exchange for instant access to a streaming library of movies and TV shows. The most well-known subscription VOD services include Netflix, Hulu, and Amazon, while established media players plan their own rival SVOD services. In addition, media giant Disney is launching its own SVOD service, Disney + - which brings together content from Disney, Pixar, Marvel, Star Wars and National Geographic.

A Growing Demand

The demand for SVOD is expected to grow rapidly, led by the younger generations. According to Statista, 18-24 year olds spend an average of 39 minutes per day using some sort of SVOD service.

Technavio said a key factor driving the growth of the market is rising adoption of mobile computing devices and applications. The rising adoption of smartphones and tablets has increased the target consumers base for vendors that offer SVOD and VOD services, whereas the availability of high-speed internet and smartphone applications has improved access to SVOD services.

Initially, vendors offered SVOD services through websites. However, the increasing use of mobile computing devices encouraged them to develop mobile applications which can stream videos. The use of such applications simplifies the process of payments. They also collect the personal details of consumers, which can be used to retain them through targeted advertising. Hence, the number of people consuming SVOD services through their mobile computing devices is increasing.

Traditional TV screens

The movement is not all one way, however. Parks Associates research finds SVOD services have transitioned back into the home’s living room, with a majority (52%) of U.S. broadband households now watching online video on a TV that is connected to the internet.

The company’s latest research, 360 View: Digital Media and Connected Consumers, also finds that watching TV or movies at home is the most popular leisure activity among U.S. broadband households, with 55% selecting this among their top two favourite leisure activities. In US households, 19% of consumers subscribe to either Netflix, Hulu, or Amazon Prime Video and another SVOD service, compared to 13% in 2017.

Are You ready for a SVOD Proliferation?

Rohde & Schwarz is here to support you today, and for the future, and endeavour to stay-ahead of trends to ensure our clients get innovative products that help real needs. With our next generation media storage, we can provide you with the massive scalability you’ll need to adapt to the changing industry. Discover our high-performance broadcast and media technology today.

The lowdown on OTT - eBook

Rohde & Schwarz has also created a free downloadable eBook that looks at the new OTT technologies and the challenges and opportunities they bring.

Posted by Chris Dickinson, technology journalist and editor of the Always On blog. March 22, 2019.

More from the blog

The lowdown on OTT - eBook

Technical and commercial processes have completely changed the market dynamics between traditional broadcast and OTT service providers. OTT continues to evolve into a more reliable delivery system with technologies such as CMAF, OMAF, AV1, VVC, VR, 5G and many more becoming widely deployed over the next few years in order to bring rich immersive content to a screen near you. This paper looks at the new OTT technologies and the challenges and opportunities they bring.

Posted by Patrizia Muehlbauer. February 20, 2019.

Download now

The 5G market is set to increase rapidly: What does the future hold?

More connected devices, more traffic, and enhanced mobile network performance. Industry giants have revealed their predictions for the future of the 5G network. Read the statistics here and how the EBU and European field trials are taking the technology forwards.

Posted by Chris Dickinson. March 22, 2019.

Read more

Ruptly partners with Rohde & Schwarz at CABSAT 2019

Ruptly, the award-winning international news agency, partnered with Rohde & Schwarz at CABSAT 2019 in Dubai. The company used a R&S RelayCaster encoder to demonstrate its ability to distribute high-quality SDI signals over long distances, relying only on IP and the internet.

Posted by Chris Dickinson. March 18, 2019.

Read more

Technology changing the way we see sports

Technology is advancing the way we engage with sport, with the introduction of high-speed broadband speeds. Find out what this will mean for the viewers at home as well as those in the industry.

Posted by Adrian Pennington. March 13, 2019.

Read more

DVB World highlights network growth, OTT, IP and 5G

The packed DVB World 2019 conference in Dublin highlighted the growth of DVB broadcasting around the world, alongside new technologies including OTT (Over-The-Top), broadcasting over IP, 5G and the future of media delivery.

Posted by Chris Dickinson. March 13, 2019.

Read more

ENEX chooses IP contribution solution for new global network

ENEX, the global association for TV broadcasters, has chosen R&S RelayCaster, the IP contribution solution from Rohde & Schwarz for its new global contribution and distribution network.

Posted by Chris Dickinson. March 8, 2019.

Read more

R&S SpycerBox trade-in program launches

Rohde & Schwarz has launched a R&S SpycerBox trade-in program, whereby you can trade in your R&S SpycerBox for the new R&S SpycerNode and receive attractive discounts. The offer ends June 30, 2019.

Posted by Chris Dickinson. March 1, 2019.

Read more

Our solutions

Related products

Sign up for updates

Sign up for updates

Supply your email and get regular news and views from the Always On blog

Sign up now