Rapid growth of SVOD subscriptions The SVOD sector is growing at a rapid rate. There will be a total of …
Rapid growth of SVOD subscriptions
The SVOD sector is growing at a rapid rate. There will be a total of 1,161 million SVOD subscriptions by 2025; this is an increase from 642 million at end-2019. However, global players cannot rely directly on fixed broadband subscriptions alone to boost numbers. SVOD subscriptions via direct fixed broadband connections will reach 526 million by 2025, which will account for 45% of the total subscriptions. A further 176 million – 15% of the global total– will be achieved indirectly via partnerships with pay-TV operators.
Fixed broadband penetration is low in many emerging markets, so smartphone connections are essential; this is helped by the development of the super-speed 5G network, which is being rolled out globally. By 2025, 291 million SVOD subscriptions – or 25% of the global total – will come directly to the SVOD platforms via mobile apps.
Another 170 million – 15% of the global total – will come indirectly via mobile operators. Therefore, 40% of SVOD subscriptions will be through smartphones by 2025.
By 2025, 30% of global SVOD subscriptions – or 346 million – will be indirect either via a partnership with a mobile operator or through a distribution deal with a pay-TV operator.
Simon Murray, the Principal Analyst at Digital TV Research, said: “A major advantage to SVOD platforms of partnerships with local mobile or pay-TV operators is immediate access to their subscribers. Local players can also undertake billing in local currencies. The operators gain commissions and kudos from carrying the SVOD platforms.”
Netflix has expanded the number of these partnerships rapidly in recent years. From the 493 operators surveyed, Netflix has deals with 111 of them. After a slow start, Amazon Prime Video is rapidly increasing its partnerships, with 52 recorded.
Source: Digital TV News
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