The Global Subscription Video on Demand Market size was valued at USD 56.33 Bn in 2020 and is expected to reach USD 192.33 Bn by 2027, with a growing CAGR of 19.7% during the forecast period.
Subscription Video on Demand (SVOD) is a media distribution system in which a user subscribes to the company by paying monthly, or quarterly, or yearly. This allows users to access videos without a traditional video playback device and the constraints of a typical static broadcasting schedule. Recurring subscriptions provides access the most out of each of the customers. This provides easy access to the users customized watchlist. SVOD companies generate revenue by charging their customers a monthly subscription fee. Subscribers receive full access to a library of videos, TV shows, and movies in exchange.
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Global Subscription Video on Demand Market Dynamics
Growing number of video streaming apps is anticipated to drive the subscription video on demand market growth in the near future.
Additionally, the increasing demand for smart TV’s is expected to drive the subscription video on demand market growth in the near future. Smart TVs are android based in which a user can login to the account and stream the shows accordingly. In the United States, The Walt Disney Company announced that its Disney+ service had reached 10 million subscribers in (2019), after its initial launch, placing it fourth on the list.
Moreover, in addition to messaging services, some OTT apps provide the functionality such as users broadcast entertaining videos, music, and local or international news to its customers. This broad range of streaming solutions is hastening its adoption. However, high costs associated with content development may hinder the subscription video on demand market growth in the near future.
The Global Subscription Video on Demand Market Segmentation:
By Streaming Device
By Streaming Solution
By Deployment
By User
By Region
Based on streaming device, the smartphones segment is expected to grow significantly during the forecast period due to its use in Over the Top (OTT) platform
Based on streaming device, the market has been segmented into smart tv, laptops & desktops, smartphones, and others. Smartphones held the largest market share in 2020, as majority of people were bound to use smartphones for entertainment purpose. For instance, the use of smartphone is estimated to be highest among older age groups, particularly in Argentina. In Argentina, smart TV ownership was already high in 2019 and remained unchanged in 2020, at 58% of internet users. Additionally, the smartphone, users increased sharply among 16–24-year-olds while declining in all older age groups.
Moreover, during the forecast period, entertainment is expected to be the primary driver of this segment. For instance, Subscription Video-On-Demand (SVOD) and digital audio have seen the most dramatic changes in media consumption in 2020. In the first quarter of 2020, 86.3% of internet users in Argentina had used SVOD services. During the same time period, the proportion of people who streamed music, listened to podcasts, or listened to other online audio content increased to 78.9%.
Based on deployment, the cloud segment in the subscription video on demand market is growing at the highest CAGR during the forecast period owing to its easy accessibility
Based on deployment, the subscription video on demand market has been segmented into cloud and on-premises. Cloud segment is expected to grow at the highest CAGR during the forecast period. Cloud is the major point of storage for this SVOD platforms, as cloud collects data in bulk in every second. Cloud also provides increased agility & scalability, for instance, in live streaming, this is vital and has become more relevant with sports services like ESPN jumping the trend. ESPN spends around $2 million on AWS.
Based on region, North America is expected to hold the largest market share during the forecast period owing to maximum subscriptions
Based on region, the global subscription video on demand market is categorized into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America held the largest market share in the subscription video on demand market in 2020, as large number of homes are familiar to OTT platform. For instance, in 2020, Canada streaming consumption increased as a result of the pandemic's forced isolation and restrictions. Streaming services consumed more of Canadians' time and money. Canadians estimated spend $2.7 billion on streaming services in 2020.
Additionally, Canadian streamers consume on average 3.2 hours of streaming content every day. Moreover, streaming content had been increasing prior to the pandemic, but 2020 saw a significant acceleration of that trend, as 54% of Canadians streaming had increased over the past year, with age 18-34 citing the most significant change.
Additionally, in Europe, the average usage of SVOD among TV households was 17% for EU 27 countries. Scandinavian countries were the major contributor to SVOD subscriptions. A total of 197 SVOD services were active in Europe by the end of December 2016, the majority of services include film and TV. Moreover, Netflix holds an approximate 46% of the total number of over-the-top (OTT) SVOD subscribers in Europe, and Amazon holds about 20% respectively. In certain national markets, Netflix faces strong competition from national players and has a lower-than-average market share. This is the case observed particularly in Spain, Poland, Slovenia, or Romania.
Company Profiles and Competitive Intelligence
The key players operating in the subscription video on demand market are:
The report also provides an in-depth analysis of subscription video on demand market dynamics such as drivers, restraints, opportunities, and challenges
Drivers
Restraints
Opportunities
Challenges
COVID-19 Impact on the Subscription Video on Demand Market Analysis
Covid-19 had a positive impact on the subscription video on demand industry in 2020. The lockdowns and the complete freeze in the supply chain supported the subscription video on demand market growth in 2021. For instance, in the first quarter of 2021, amazon prime registered 200 million members on subscription basis. Additionally, the demand for cloud-based games on subscription basis is anticipated to support the subscription video on demand market growth in the near future.
Due to lockdown most of the people opt for entertainment and it was a sudden increase in the streaming on OTT. The Subscription Video on Demand (SVOD) subscription is held by 56% of UK home users. Despite the fact that the service was only launched on March 24th, Disney+ accounted for 52% of new subscriptions. Half of all Disney+ subscribers signed up for an annual subscription, proving the value of the £49.99 pre-order offer. Tiger King surpassed The Mandalorian as the most frequently mentioned piece of content, even among Disney+ subscribers. Access to back catalogues proved to be a key differentiator, posing challenges for brands lacking a diverse content offering. Netflix dominated in customer advocacy, with a Net Promoter Score of +46, which was significantly higher than its competitors.
The report also provides an in-depth analysis of key trends in the subscription video on demand market
The report also provides an in-depth analysis of recent news developments and investments
The unique insights provided by this report also include the following:
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