November 30, 2020
Ongoing growth in subscription streaming video is projected to result in more global SVOD subs in 2020 than pay-TV, according to new data from Capgemini. In the span of a year, seven new major OTT players launched in the U.S. market alone, including Apple TV, Disney+, short-lived Quibi, NBCUniversal’s Peacock and HBO Max.
In the U.S., total SVOD subs are expected to reach 199 million, up 24% from 2019. Pay-TV subs are projected to decline 3% to 88 million.
In the U.K., SVOD subs will skyrocket 93% to 22.4 million subs, while pay-TV dips 5% to 14.3 million. In Germany, SVOD will soar 97% to 13.4 million, while pay-TV remains flat at 25 million. Both countries’ SVOD growth is driven by Netflix, Disney+, Amazon Prime Video and local services.
The report says OTT video consumption is no longer a platform for the younger generation only. Where those under 35 years-old used to be the main users of streaming video, the service now leads in share of video consumption for those up to 50 years old and is nearly as popular as pay-TV for those over 50 in the U.S. and parts of Europe.
Indeed, in the world’s two most-populous countries: China and India, SVOD sub growth will leap 98% and 19%, respectively, to 198 million subs and 140 million. Notably, pay-TV will remain strong, up 2% respectively, at 347 million subs and 161 million.
“Traditional media business is declining,” Christian Grece, European television and VOD markets analyst at the European Audiovisual Observatory, said in a statement. “Streaming is the future because it gives the opportunity for stakeholders to establish a direct relationship with the consumer and eliminate intermediaries. Everyone is entering the race with the desire to access consumer data.”