September 20, 2022
Netflix has taken its share of hits this year, including consecutive fiscal quarters of subscriber losses in the United States. That said, the subscription streaming video pioneer is set to continue its reign as the largest SVOD platform through 2027, according to projections from Digital TV Research.
The U.K.-based research company says global SVOD subscriptions are projected to increase by 475 million from 2021 to 2027 to reach 1.68 billion. The growth will be spearheaded by six U.S.-based streaming platforms, accounting for 47% of the world’s market share in 2027.
Analyst Simon Murray said the company revised downward by 67 million Disney’s SVOD sub growth projection to 274 million, which was set to surpass Netflix at 253 million. Murray reconfigured the estimates after Disney+ Hotstar failed to retain the India Premier League cricket rights, losing out to Paramount+.
“SVOD revenue for Disney+ will reach $15 billion by 2027,” Murray said in a statement. “Despite lowering our forecasts, revenue for Disney+ will be the same in 2027 as our previous forecast. ARPU and revenue will increase in key markets after the platform introduces the hybrid AVOD/SVOD tier and the more expensive SVOD-only tier.”
Netflix will also remain the revenue winner, with $30 billion expected by 2027 — similar to Disney+, HBO Max and Paramount+ combined. Global SVOD revenue is projected to reach $132 billion by 2027.