Report: Online TV, Video Subscriptions to Reach 2 Billion Globally by 2025

New data from Juniper Research finds that there will be nearly 2 billion active subscriptions to on-demand video services by 2025, a 65% increase over the end of 2020.

The primary engine for this growth will be from traditional TV broadcasters increasingly turning to streaming video platforms to extend their linear reach and compete with online video behemoths such as Netflix, Amazon Prime Video and Disney+.

The U.K.-based Juniper notes that traditional broadcasters are turning to hybrid services, a combination of subscription- and advertising-supported monetization, such as NBCUniversal’s Peacock and ViacomCBS’s pending Paramount+ (currently CBS All Access), which offer tiered services that generate subscription revenue but show advertising in lower-priced viewer options. Juniper anticipates that these services will account for $1.4 billion in advertising spend by 2025.

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The report contends that as subscription services become increasingly prominent, particularly in the United States, different models will be needed to combat subscription fatigue among consumers. The report estimates that in 2020 there was an average of four SVOD subscriptions per domestic household, but with growth slowing significantly from 2021.

“Thanks to this high level of market saturation, streaming providers need to keep their offerings competitive to retain subscribers,” Nick Hunt, co-author of the report, said in a statement. “Hybrid monetization is one way that VOD providers can keep their offerings low-cost, and therefore less likely to be dropped.”

Juniper projects that more than 70% of streamed video sessions in the next five years will occur on smartphones, thanks to the emergence of social videos on platforms such as TikTok. However, these do not yield a high number of ad spots per video watched, meaning that smartphone advertising spend will only grow at an average rate of 2% each year over the forecast period.

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