UK SVOD market to grow 100% over next five years | Media Analysis | Business
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Fuelled even further by the country’s Covid-19 lockdown, the UK’s solid growth in subscription video-on-demand (SVOD) adoption is set to continue over the next five years, according to research from GlobalData.

GlobalData SVOD UK 17May2020The UK SVOD Forecast, May 2020 forecasts that the total number of SVOD subscriptions is expected to double between 2019 and the end of 2024, rising from 22.4 million to 44.6 million. Total market revenue, exclusive of VAT, is expected to also double from £1.5 billion in 2019 to £3 billion in 2024.

Outlining the drivers for this growth, the analyst said that prior to the Covid-19 outbreak, the SVOD market in the UK was experiencing a high rate of growth, with no sign of plateauing. The UK’s SVOD market has traditionally been dominated by Netflix and Amazon Prime Video, with Sky’s NOW TV in third place.

While it acknowledges that there will be some impact on SVOD adoption from the economic fallout from Covid-19, GlobalData expects this to be outweighed by a combination of lockdown-driven adoption and consumer take-up of new services such as Disney+. It believes that the market is expected to experience a record-level subscription growth in 2020 on a net additions basis.

“The recent launch of Disney+, Apple TV+ and BritBox provides consumers with more choice and will help propel market growth,” said Joel Cooper, senior director, telecoms market data and intelligence at GlobalData. “Disney+’s impact is expected to be particularly pronounced given its brand power, breadth of premium content and low price. SVOD in the UK is a long way from saturation point. The market represents a clear opportunity for existing players as well as potential new entrants.”