The number of SVOD (subscription video on demand) homes is forecast to reach 428 million across 200 countries by 2021, up from 177 million in 2015 and an expected 248 million by end-2016. The total will grow by 70 million in 2016 alone, according to the Global SVOD Forecasts report from Digital TV Research.
The US remains the largest market for SVOD services, and will grow to support a predicted 127 million users by 2021, although China is closing the gap.
Global SVOD revenues will reach $32.18 billion in 2021; 18 times the $1.74 billion recorded in 2010 and up by $20 billion on the $12.20 billion recorded in 2015. Revenues will grow by $5 billion in 2016 alone to take the total to $17.46 billion.
Asia to become world’s largest SVOD market in 2019
Subscriptions to video-on-demand (VOD) services in China are to rise 44 million from 2016 to 74 million in 2021, with the Asia Pacific on course to be the paid streaming sector’s market leader by 2019.
Simon Murray, Principal Analyst at Digital TV Research, said: “North America supplies most of these subscribers at present, but Asia Pacific will become the top region by 2019. 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, especially via mobile phones.”
The US (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.
Read the full press release from Digital TV Research here