June 16, 2021
Netflix’s market share in the U.S. may be declining with the addition of services such as HBO Max, Peacock and Discovery+, but the SVOD pioneer is still on track to generate a third of the market’s revenue in 2021.
In its quarterly report, Brightcove June 16 disclosed that 30.8% of all domestic OTT subscription revenue will go to Netflix. Disney+ (which includes ESPN+ and Hulu) will account for 25.9% of SVOD revenue, with Google-owned YouTube accounting for 13.2%. Just two years ago, Netflix’s share of domestic SVOD revenue topped 44.4%.
Brightcove expects total U.S. SVOD revenue to rise through the end 2024, reaching $122.9 billion. This year, domestic video subscription revenue will increase 3.6% to $119.7 billion.
As has been previously documented, streaming video flourished during the pandemic — driven by larger percentages of the population homebound due to government-mandated curfews. Additionally, Brightcove contends the pandemic reduced people’s disposable income, which it said led to a record year in pay-TV cord-cutting.
Prior to the pandemic, the growth of domestic SVOD revenue had been slowing. But in 2020, revenue rose by 41.2% from 2019, up from 34.5% in 2019.
“We expect that this year, SVOD revenues will increase by 29.9% to $38.15 billion,” read the report.