Total spend on SVoD services throughout Western Europe is set to hit €3 billion (£2.58 million) by the end of the year, according to the latest research from IHS Markit.
Spend reached €2 billion (£1.72 million) at the end of 2015, and IHS expect at least a further billion to be added to that total.
“The multi-territory international players changed the game dramatically for SVoD in Western Europe in a very short period of time,” said Tania Loeffler, analyst at IHS Technology.
“When Netflix launched in the UK, total consumer spending on SVoD in Western Europe more than doubled to €307.6 million (£264.8 million) in 2012. By the end of 2014, that figure had more than trebled to €1.1 billion (£950 million) due to Netflix’s European expansion and the launch of Amazon Prime in the UK, Germany and Austria.”
The report states that year-on-year growth will slow was key markets reach maturation between now and 2020, but that the growth will still be ‘sufficient’ to make SVoD the largest platform with regards to home video spending.
IHS forecast SVoD to account for 49 per cent (£3.6 billion) of the home video market by 2018, increasing to 58 per cent (£4.5 billion) by 2020.