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Analyst: Still plenty of growth left in SVoD

Analysts at Digital TV Research suggest SVoD services will see an increase of 428 million subscribers between 2022 and 2028

Despite the on-going cost of living issue around the world, subscriptions to streaming services will continue to rise reaching 1.76 billion by 2028.

Digital TV Research suggests there is still “plenty of growth left” for SVoD, with an increase of 428 million subscribers predicted between 2022 and 2028.

Simon Murray, principal analyst, said: “We estimate that Netflix will provide its hybrid AVoD-SVoD tier in 85 countries by 2028, with Disney Plus in 91 countries, HBO in 55 and Paramount Plus in 56. These include pan-regional services in Spanish-speaking Latin America and also in the Arabic-speaking countries.”

These four platforms collectively will have 372 million hybrid AVoD-SVoD subscribers by 2028 – or 56 per cent of their total subscriber base, suggested the analysts.

Given that Disney Plus subscribers in most markets are expected to convert automatically to the hybrid AVoD-SVoD tier, the platform will have 206 million subscribers to this tier by 2028 – or 88 per cent of its total, added the company. At the other end of the scale, 24 per cent of Netflix’s total subscribers will pay for the hybrid AVoD-SVoD tier by 2028 – or 63 million. 

Murray continued: “Netflix has a large base of SVoD-only subscribers. Most of these subscribers will remain on these plans, despite the AVoD-SVoD tier being considerably cheaper. The hybrid tier will appeal most to developing countries where disposable incomes are lower. The hybrid tier will also be attractive to new subscribers that do not have legacy SVoD-only subscriptions.”