New Services Set to Drive SVoD Revenues up 25% to $36 Billion in 2019 SVoD Market Research, Analysis and Commentary

Apr 18, 2019

Subscription Video on Demand (SVoD) continues to resonate with consumers across the globe, becoming an integral part of the video viewing lifestyle. A new SVoD report from Futuresource Consulting reveals that SVoD already reaches more than 60% of households in North America, 26% in Western Europe, 21% in Asia-Pacific and 19% in LATAM.

Netflix and Amazon Prime Video accounted for one-third of all subscriptions globally in 2018. However, when it came to SVoD spend, the two companies commanded almost two-thirds of the market, with Netflix leading the way in terms of headlines, subscribers and revenue, adding an extra 31 million subscribers to its ranks in 2018 and has posted its most successful quarter to date.

SVoD services need to be extremely mindful of Netflix, choosing their strategies carefully. The market has shown that competitors to Netflix do not perform well, and a complementary offering has a far better chance of survival and success. Exclusive, relevant and local content, particularly outside the USA, is a necessity to capture and hold audience appeal. Moving forward, although the uptake of multiple services will continue to drive overall subscription numbers, the market will be limited to a small number of clearly differentiated and complementary services. This makes a carefully defined market and content strategy even more crucial.

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