Asia to become world’s largest SVOD market in 2019 | VOD | News | Rapid TV News
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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.

SVOD Becky 12 DecAcross a total of 200 countries, homes receiving subscription VOD (SVOD) services are expected to number 428 million by 20121, up from 177 million in 2015 and the 248 million forecast by the end of 2016, according to Digital TV Research. Its Global SVOD Forecasts report estimates the total number of SVOD homes will grow by 70 million in 2016 alone.

The US remains the largest market for SVOD services, and will grow to support a predicted 127 million users by 20121, although China is closing the gap.

“North America supplies most of these subscribers at present, but Asia Pacific will become the top region by 2019,” said Simon Murray, principal analyst at Digital TV Research.

“This comes despite Netflix being unlikely to secure direct access in China and only making a limited impact in other major population centres 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 report forecasts that Netflix will have almost 118 million paying subscriptions by 2021 – or 27.5% of the global total. Although the number of international subscribers will overtake its US ones in 2018, the US will still contribute 44% of its subscriptions by 2021

Subscription revenues for Netflix will double from US$6.37 billion in 2015 to $13.14 billion in 2021. Despite growth elsewhere, North America will still contribute 52% of its total in 2021.

“We estimate that Netflix has distribution partnerships with 79 pay TV, telco or mobile operators across 44 countries. These partnerships include multinational deals with Liberty Global, Millicom/Tigo and Telia,” added Murray.

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.

As Amazon does not directly charge its Prime subscribers for watching video, Digital TV Research says its overall SVOD projections include estimations that 60% of them do watch video – and so half of their Prime subscription fee is allocated to video.