Netflix, Amazon to drive East European SVOD surge | VOD | News | Rapid TV News
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A study from Digital TV Research is forecasting that there will be 16.5 million subscription video-on-demand (SVOD) subscribers across 22 Eastern European countries by 2022, more than quadruple that recorded by the end of 2016.

easteurosvod 11sep2017The Eastern Europe OTT TV & Video Forecasts report shows that SVOD will become the region’s largest over-the-top (OTT) video revenue source by the end of 2017, with revenues projected to total $1.3 billion by 2022, accounting for 57% of total OTT revenues. This represents an increase of $190 million compared with 2016 when SVOD made up just over a third of total OTT revenues.

Digital TV Research calculates that OTT TV episode and movie revenues for 22 Eastern European countries will reach $2.23 billion in 2022, which is quadruple the $552 million recorded in 2016. Russia will account for 46% of the region’s OTT revenues by 2022, with Poland generating a further 19%.

As is the case in other territories, Netflix and Amazon Prime Video will boost the Eastern European SVOD sector considerably. The report estimates that Netflix will have 3.43 million subscribers by 2022, nearly triple its 2016 result. Amazon Prime Video is set to total 1.12 million subscribers by 2022.

Yet despite achievements, the study also warned of impending issues in Russia. The analyst noted that the Russian regulator has recently introduced a 20% foreign ownership equity limit on OTT platforms with more than 100,000 subscribers.

“We believe that this will force Netflix and Amazon Prime Video to abandon their standalone platforms,” said Digital TV Research principal analyst Simon Murray. “This is a major blow to their global ambitions. Instead, they are likely to license their original content to a local platform. Amediateka already brands itself “home of HBO”, so deals with other platforms are possible. Netflix has already done something similar in China with IQiyi.” 

Excluding Russia’s 6.80 million SVOD subscribers by 2022, the Eastern Europe OTT TV & Video Forecasts report Netflix will control 35% of SVOD subscribers in the remaining 21 countries. Amazon Prime Video will contribute a further 12%.