SVOD market set to double from 2019 to 2025 | Media Analysis | Business
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Days after showing just how much the mobile platform is contributing to the rapidly growing market, Digital TV Research has released data showing that smartphones will provide two-fifths of 1.161 billion subscription video-on-demand (SVOD) customers by 2025, up from 642 million at the end of 2019.

digtvres 6JUly2020The SVOD Forecasts By Vendor report predicts that by 2025, 291 million SVOD subscriptions, a quarter of the global total, will come direct to the SVOD platforms via mobile apps. Yet even though there is set to be a hugely robust mobile sector, global players cannot rely on direct fixed broadband subscriptions alone to boost numbers said the study. It noted that fixed broadband penetration is low in many emerging markets, so smartphone connections are important and that SVOD subscriptions via direct fixed broadband connections will reach 526 million by 2025 – or 45% of the total.

Digital TV Research calculates that that a further 176 million – 15% of the global total – are set to be achieved indirectly via partnerships with pay-TV operators while another 170 million – 15% of the global total – are set to come indirectly via mobile operators. By 2025, 30% of global SVOD subscriptions – or 346 million – will be indirect either via a partnership with a mobile operator or through a distribution deal with a pay-TV operator.

A major advantage to SVOD platforms of partnerships with local mobile or pay TV operators is immediate access to their subscribers, said Simon Murray, principal analyst at Digital TV Research. “Local players can also undertake billing in local currencies. The operators gain commissions and kudos from carrying the SVOD platforms,” he noted.

As evidence of this, the SVOD Forecasts By Vendor report highlighted that Netflix has expanded the number of these partnerships rapidly in recent years. From the 493 operators surveyed, Netflix has deals with 111 of them. After a slow start, rival Amazon Prime Video was rapidly increasing its partnerships, with 52 recorded.