November 12, 2018
Revenue from subscription streaming video services such as Netflix and other over-the-top video services is projected to top $35 billion this year — up nearly 30% from revenue of $25.04 billion in 2017, according to new data from Digital TV Research.
Spearheaded by Netflix, Prime Video and Hulu, SVOD revenue in the United States will surpass $16.7 billion, followed by China ($3.7 billion), the United Kingdom ($1.7 billion), Japan ($1.09 billion) and Germany ($1.03 billion). Other countries account for a combined $10.7 billion.
“No surprises that the U.S. is the top earning [SVOD] country,” Simon Murray, principal analyst at London-based Digital TV Research, said in a statement.
Murray, however, cautions that the U.S. is losing its market prowess in SVOD as Netflix and other services expand globally – triggering increased third-party competitors.
“The U.S. contributed to 56% of the global revenue in 2015, but this proportion will fall to 48% in 2018,” he said. “Despite this, the U.S. will add more than $10 billion in revenue over this period.”
Digital TV Research said it projects 474 million SVOD subscribers by the end of the year globally – up 108 million from 2017 and 304 million at the end of 2015.