The global SVoD market is predicted to add 143 million subscriptions during 2023, despite the introduction of new advertising-tier options to some of the global players.
Research from Omdia suggests the global number of online video subscribers will reach 1.7 billion this year. However, the addition of 143 million subscriptions is still 50 per cent lower than the number achieved in 2020.
“2020 was a boom year for online video streaming, due to the pandemic and subsequent outdoor limitations which resulted in more than 300 million new global subscription online video services,” said Maria Rua Aguete, senior director in Omdia’s Media and Entertainment practice.
“SVoD has grown at one of the fastest rates on record. In fact, in absolute terms, 2020 added more subscribers to the video-on-demand industry than at any other point in history and most likely, at any point to come.”
Rua Aguete added that the biggest battle the market will face in 2023, is likely to be the continuing rise in prices which may scare customers and could slow down growth. “Thanks to the introduction of advertising tiers, SVOo players like Netflix could still grow in already saturated subscription markets such as the USA but also acquire subscribers in LatAm or APAC where price was considered a reason not to subscribe,” she added.
“We expect 14 per cent of all the subscriber growth in 2023 will come from LatAm.”
