Futuresource Consulting has predicted the SVoD market will account for 70 per cent of home video spend by 2021.
According to the company's latest report, services such as Netflix, Amazon Prime Video and Hulu are rapidly dominating the overall home video entertainment sector, which in addition to SVoD includes DVD, Blu-ray, EST and VoD. In 2013, SVoD accounted for 13 per cent of home video consumer spend, but by the end of 2017, SVoD comprised almost half of the $42 billion spent worldwide. Global subscription numbers will rise at a CAGR of 15 per cent between 2017 to 2021, according to Futuresource.
“2017 was the year that annual SVoD spend exceeded worldwide spend on packaged media,” said report author Tristan Veale. “Not only this, but by 2021 SVoD will account for 70 per cent of total home video spend with households taking multiple services instrumental in the growth of this sector.”
The report also predicts consumer spending on entertainment content (video, games and music) is set to reach $439 billion globally by 2021, a 17 per cent increase from 2017,
“As expected, TV and video account for the lion’s share of this consumer spend,” added Veale. “However, music has enjoyed a resurgence in recent years and continued innovations within gaming means that both markets are impacting on consumers’ spending habits, with smartphones a key facilitator of this tearing up of the entertainment market rulebook.”