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HomeNewsNew MediaSVOD subscriptions to witness 5% growth due to Corona: Strategy Analytics
Monday, 30 March 2020 12:58

SVOD subscriptions to witness 5% growth due to Corona: Strategy Analytics

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Subscription Video-on-Demand (SVOD) services platforms will see 5% growth in subscription this year due to COVID-19, as per Strategy Analytics’ latest forecast for Subscription Video-on-Demand (SVOD) services. 

The projection is now 949 million paid subscriptions globally by the end of 2020, suggesting an increase of 47 million compared to earlier forecasts. Longer-term, the forecast predicts that paid SVOD subscriptions will grow by 621 million between 2019 and 2025, reaching 1.43 billion, according to Strategy Analytics, TV & Media Strategies (TMS) ‘Global SVOD Forecast, by Service (2010 – 2025)’.

At present, China and the U.S. combined account for nearly two-thirds (65%) of paid SVOD subscriptions globally, however, as these markets mature and approach market saturation and paid subscriptions, particularly in Southeast Asia grow, their share of global SVOD subscriptions will fall to 55% in 2025.

TV & Media Strategies director Michael Goodman commented: “One significant factor affecting future SVOD growth is the impact of the Coronavirus in both the short and long term. In the near term, the Coronavirus will actually boost SVOD subscriptions, as well as viewing of these services, as an ever-growing number of consumers adopt social distancing or are forced into quarantine. In the mid-to-long term much depends on the length of the pandemic and resulting economic damage. As businesses shut down and individuals are laid off consumers are going to have to make hard decisions about how they spend their money and as wonderful as Netflix, Amazon Prime Video, Disney+ and other SVOD services may be, they are not essential services.” 

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