September 25, 2018
To some spiritual believers, the number 777 signifies luck, good fortune, miracles, optimism and fulfilled dreams. All of which apparently is in the cards for the subscription video-on-demand market.
New data from Digital TV Research suggests global SVOD subscriptions will top 777 million (excluding free trials) by 2023, an increase of 409 million subs from the end of 2017.
China and the United States will generate more than 50% of the global SVOD subscriber count by 2023, but in addition, nine other countries will have more than 10 million SVOD subs each.
China will have the most SVOD subs – despite multiple subscriptions being commonplace in the U.S. China will have 235 million SVOD subs – up from 97 million in 2017. An impressive tally considering Netflix and Amazon Prime Video do not operate in the country.
“The U.S. will have 208 million SVOD subs; up by an impressive 76 million on 2017 despite its relative maturity,” Simon Murray, principal analyst at Digital TV Research, said in a statement. “Its share of the global market will fall from 36% in 2017 to 27% by 2023.”
By 2023, Netflix will contribute 192 million subs (25% of the 777 million subs), Amazon Prime Video 120 million (15%), China 235 million (30%). Another 230 million (30%) SVOD subs will come from third-party services.
Prime Video launched in 200 countries (except China, North Korea, Crimea and Syria) in late 2016 – like Netflix. DTV Research projects 120 million Prime Video subs by 2023 – double the 2017 total. However, 110 million of the total will be in Amazon Prime territories, and therefore will not directly pay for the video platform.
SVOD revenue will reach $69 billion by 2023; up by nearly $44 billion since 2017. The U.S. will remain the SVOD revenue leader by a considerable distance – adding $17 billion between 2017 and 2023 to take its total to $29 billion.