US players grab lion’s share of $53BN global SVOD revenues | VOD | News | Rapid TV News
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Despite the widespread availability of burgeoning subscription video-on-demand (SVOD) services around the globe, revenues are concentrated in a few markets with US players accounting for more than two-fifths says research from Strategy Analytics.
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The Global SVOD Forecast, by Service (2010 – 2025) report found that the US SVOD players accounted for 43% of revenues, followed by China (17%), Germany (4%), and the United Kingdom (4%). Overall, the top ten countries accounted for 81% of the total $53.34 billion (€47.55 billion) consumer spend on SVOD services in 2019.

Attributing factors driving the US dominance of consumer spend on SVOD services, the analyst noted that in general, US TV households are more likely to subscribe to SVOD services than those in other countries. In 2019, 74% of US TV households subscribed to one or more SVOD service. In comparison, the global average was 32%.

Furthermore, the analyst observed that on average, US SVOD households were more likely to subscriber to multiple services than their counterparts in other regions. On average, US SVOD households subscribed to 2.45 SVOD services in 2019 and globally this was 1.54.

Strategy Analytics also pointed out that SVOD services tends to be more expensive in the US than in other countries, though that can vary by country and service.

For example, Netflix is significantly more expensive in Denmark and Switzerland than the US. Globally, the avg. spend per SVOD service in 2019 was $6.24 (€5.56), in the US the average was 63% higher at $10.22 (€9.11) per SVOD service. Given that each SVOD household in the US subscribes to multiple services they spent an average of $22.52 (€20.08) per month on SVOD services, compared to $9.26 (€8.25) globally.

Strategy Analytics forecast that by 2025, global consumer spend on SVOD services will likely grow to $102.86 billion (€91.70 billion). Of this, the share of US players is forecast to grow by just one percentage point from 2019 followed by China (15%) and Germany (5%). US SVOD households are projected to take 3.21 services by 2025 compared with 1.82 globally.

“Whether it is pay-TV, video rental and sell-thru, or subscription VOD, US consumers have historically shown a willingness to spend on these products and services at a far greater rate than those in the vast majority of other countries,” said to Michael Goodman, director, TV and Media Strategies at Strategy Analytics, commenting on the Global SVOD Forecast, by Service (2010 – 2025) report. “There are many local and regional SVOD services around the world, these services must be realistic about the ultimate potential of SVOD revenues and not base their models on US levels of demand.”