New figures from the European Audiovisual Observatory finds the joint SVoD and TVoD market in Europe increased from €388.8 million in 2010 to €11.6 million in 2020.
According to the report, VoD revenues alone rose from €12 million in 2010 to €9.7 billion in 2020.
The numbers include data for the UK.
The growth in SVoD revenues was driven by multiple service launches over the past 10 years and rapid consumer adoption in Europe states the report, with OTT SVoD subscriptions increasing from 300,000 subscriptions in 2010 to over 140 million in 2020.
Netflix is the most dominant of the SVoD services by subscriber market share – with the streamer ranked as number one in all but two of the 28 countries included in the report.
The growth on the TVoD market was driven by a steady increase in retail and rental revenues, from €377 million in 2010 to €1.87 billion in 2020, with retail revenues expected to surpass rental revenues in the coming years as digital purchases of recent theatrical films become more popular with EU consumers.
The report adds that while the AVoD/BVoD market is still in its infancy in Europe and only represents a fraction of traditional TV advertising revenues for most commercial TV players, the sector is set to rapidly increase in revenues as new AVoD players enter the EU market and advertisers shift their advertising expenses online to reach consumers who are increasingly spending viewing time on advertising-financed services.
Overall, the report suggests paid VoD revenues are still a small fraction of total audiovisual revenues in the EU (7 per cent of €114.5 billion in 2019), but it states this share is set to increase with profound changes happening within the audiovisual sector.