Online video services to reach 1.7BN subs by 2023 | Media Analysis | Business | News | Rapid TV News
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Despite services facing a battle in terms of a continuing rise in prices, general economic uncertainty and market saturation, 2023 is on track to be a good year for subscription video-on-demand (SVOD) says analyst Omdia.
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According to the study, SVOD has grown at one of the fastest rates on record. It noted that 2020 was a boom year for online video streaming, due to the pandemic and subsequent outdoor limitations which resulted in more than 300 million new global subscription online video services, adding in absolute terms more subscribers to the video on demand industry than at any other point in history and most likely, at any point to come.

And as the industry has moved on, the analyst says the introduction of the ad tiers and an abundance of new content has meant that 2023 will be an important year for growth in SVOD and its subscribers.

Yet the analyst cautioned that the SVOD sector would be no exception to experiencing the waves of growth and pools of stagnation as do other industries. It predicted 2023 will be a year of industry-wide cooling despite the myriad of services coming from big Hollywood players. It believes that the launch of advertising tiers by leading players does mean that for many of these players, 2023 would still be a year of growth and SVOD players will add new 143 million subscriptions, representing50% of what was achieved in 2020 the record year.

Even in countries like the USA where subscription video services have reached maturity, Omdia expects almost 40 million new SVOD subscriptions.

“Thanks to the introduction of advertising tiers, SVOD players like Netflix could still grow in already saturated subscription markets such as the USA but also acquire subscribers in LatAm or APAC where price was considered a reason not to subscribe,” observed Maria Rua Aguete, senior director in Omdia’s Media and Entertainment practice. “We expect 14% of all the subscriber growth in 2023 will come from Latin America.”