SVoD subscription revenues are expected to increase by over $4 billion in the next five years, according to new figures from Digital TV Research. The current figure stands at $2.8 billion.
SVoD’s share of OTT revenues will continue to grow, according to the 'Western Europe OTT TV & Video Forecasts' report.
The report also says OTT TV episode and movie revenues for 18 Western European countries will reach $14.65 billion in 2022; more than double the $6.90 billion recorded in 2016. Revenues are expected to climb by $1.69 billion in 2017 alone.
Digital TV Research forecasts 65.07 million SVoD subscribers by 2022, up from 33.96 million by end-2016. About 10.69 million subscribers were added in 2017.
Simon Murray, principal analyst at Digital TV Research, explained: “These are gross SVoD subscriptions where one household can pay for more than one platform. Multiple SVoD subscriptions are already popular in Scandinavia and the UK.”
“However, SVoD subscriber growth will be much more modest in countries such as France, Italy and Spain. In fact, Sweden will have more SVoD subscribers than Spain in 2022, despite only having a quarter of the population.”
By 2022, 37.1 per cent of Western European TV households will subscribe to an SVoD platform; up from 19.7 per cent at the end of 2016.
“SVoD penetration is higher the further North that you travel," said Murray. "Penetration will be particularly high in the Scandinavian countries, which have high pay-TV, broadband and smartphone penetration. There are also plenty of platforms on offer.”
Netflix will remain the largest pan-regional SVoD platform says the report, with an expected 29.61 million paying subscribers in 2022 – or 46 per cent of the region’s total (down from a 55 per cent share in 2016). Amazon Prime Video will be the second largest platform by 2022, with 15 million paying subscribers.