Study: U.S. Retakes SVOD Sub Lead From China

Thanks to Netflix, the number of gross SVOD subscriptions grew by 28% in 2019. The net subscriber count rose by 55 million (16%) to total 403 million, according to new data from Digital TV Research. The firm said gross subscriptions are growing faster than net subscribers, which means the average SVOD subscriber paid for 1.59 subscriptions in 2019 — up from 1.44 in 2018.

The U.S. overtook China to regain its position as the gross SVOD subscription leader. With about 200 million subscribers each, China and the U.S. together accounted for 63% of the global total in 2019. The U.S. added 43 million subscriptions in 2019, with China up by 35 million.

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“The number of gross SVOD subscriptions increased by 139 million in 2019 to 642 million — having grown by a similar amount in 2018,” analyst Simon Murray said in a statement.

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Ten countries had more than 10 million SVOD subscriptions by the end of 2019 — collectively accounting for 84% of the global total.

Report: India, China to Buttress Global Pay-TV Market as U.S. Declines

Pay-TV home entertainment may be in decline in the United States and Europe, but surges in India and China will help the medium top more than 1 billion subscribers through 2024, according to new data from Digital TV Research.

The London-based company said India and China — the world’s most populous countries — will add 26 million and 19 million pay-TV subs, respectively.

The U.S., formerly the No. 1 pay-TV market, will lose 14.4 million subs during the period — a decline of more than 16%.

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Indeed, China and India will account for more than 50% of global pay-TV subs with 356 million and 184 million, respectively.

“We have updated our forecasts based on June 2019 reports,” Simon Murray, principal analyst at Digital TV Research, said in a statement. “The U.S. is the world’s worst performer — with no uplift expected over the next five years. Other countries will experience a slowdown — or even some small declines in subscriber numbers — but no other country will match the gloomy projections for the U.S.”

The lone silver lining is online TV. Spurred by standalone services such as Sling TV, AT&T TV, PlayStation Vue, Hulu with TV and YouTube TV, online TV will add more than 100 million subs through 2024, reaching a global sub count of 357 million and 20% market share — up from 15% in 2018.

 

 

China, U.S. Account for Majority Global SVOD Subscriptions

No wonder Netflix wants to enter the Chinese market.

The quasi Communist country topped the U.S. in gross subscription video-on-demand users in 2018, according to new data from Digital TV Research.

China added nearly 60 million SVOD subs compared to 27 million subs in the U.S. India nearly doubled its subscription base.

Netflix does not operate independently in China, partnering instead with iQiyi to distribute select programming.

Gross SVOD subs increased by 139 million in 2018 to 508 million – or up by 38%. The net subscriber count rose by 83 million in 2018 to reach 357 million – up by 31%.

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DTV Research said the average SVOD subscriber paid for 1.43 subscriptions by end-2018 — up from 1.05 in 2010.

“China and the U.S. together accounted for 63% of the global total in 2018,” Simon Murray, principal analyst at DTV Research, said in a statement.

Eight countries had more than 10 million SVOD subs by end-2018 – collectively providing 80% of the global total.

Gross SVOD subs represented 30.5% of TV households by end-2018. The proportion of net SVOD subscribers was 21.4% – meaning that more than 20% of the world’s TV households had at least one SVOD subscription by end-2018.

SVOD became the largest OTT revenue source in 2014 when it overtook ad-supported VOD. SVOD market share reached 53% in 2018. SVOD revenue increased by $11 billion in 2018 to $36 billion – up by 44% from 2017. AVOD revenue increased by $5 billion to $22 billion.

“The U.S. added $6.5 billion in revenue in 2018, with China up by $3.6 billion,” Murray said. “Therefore, the U.S. and China were together responsible for more than half the world’s additional revenue in 2018.”

Report: U.S. Leads in Global Piracy Website Visits

Despite being home to the Motion Picture Association of America, Netflix, Hulu and other budget over-the-top video services, the United States leads the world in global visits to websites pirating illegal access to TV shows, movies, music and publishing, according to new data from Muso, a digital analytics firm.

There were 17.3 billion visits by U.S. residents to piracy sites in 2018, followed by Russia with 14.5 billion visits and Brazil with 10.2 billion.

Notably, the report found that nearly 50% of visits were to access TV programming, followed by movies (17%), music (16%), books (11.5%) and software (6%).

“Television is the most popular content for piracy and given the fragmentation of content across multiple streaming services,” co-founder/CEO Andy Chatterley said in a statement. “Whilst it’s important to restrict the distribution of unlicensed content, there is a wealth of insight to be garnered from piracy audience data that gives a comprehensive view of global content consumption.”

Interestingly, London-based Muso found that people engaging in pirated content are shying away from public file-sharing services, with 60% opting instead for unlicensed streaming sites.

“We have seen a 10% increase in people bypassing search engines and going directly to the piracy destination of their choice,” Chatterley said, underscoring how prevalent digital piracy remains globally.

“Simply focusing on take-downs is clearly a whack-a-mole approach and, while an essential part of any content protection strategy, it needs to be paired with more progressive thinking,” he said. “With the right mindsight, piracy audiences can offer huge value to rights holders.”

  1. United States Of America: 17.3 billion
  2. Russian Federation: 14.5 billion
  3. Brazil: 10.3 billion
  4. India: 9.6 billion
  5. France: 7.3 billion
  6. Turkey: 7.3 billion
  7. Ukraine: 6.1 billion
  8. Indonesia: 6 billion
  9. United Kingdom: 5.7 billion
  10. Germany: 5.3 billion

 

Roku, Apple, Amazon See Early Market Bounce Following U.S./China Trade Truce

Wall Street Dec. 3 reacted favorably early to tech stocks following weekend news the Trump Administration and China had reached a 90-day truce regarding proposed tariffs (taxes) on Chinese manufactured goods and raw materials.

Stocks for Roku, Apple and Amazon all climbed higher in pre-market trading as many — if not all — consumer electronics products, including the Roku Stick and branded televisions, Apple iPhone, Apple TV, Apple iPad, and Amazon Fire TV Stick are majority-made in China.

Trump had pledged to impose tariffs — beginning Jan. 1 — on $200 billion worth of Chinese-made steel and raw materials. Tariffs on another $267 billion in Chinese goods (i.e. consumer electronics) have been postponed as well.

Trump said the tariffs would be held off as trade negotiators between the two countries attempt to hammer out new trade agreements. In a Dec. 3 tweet, Trump wrote:

“My meeting in Argentina [at the G-20 summit] with President Xi [Jinping] of China was an extraordinary one. Relations with China have taken a BIG leap forward! Very good things will happen. We are dealing from great strength, but China likewise has much to gain, if and when a deal is completed.”

That was good enough for Tom Forte, analyst with D.A. Davidson, who upped from “neutral” to “buy” on Roku shares.

Meanwhile, Sacha Tihanyi with TD Securities, remained cautiously optimistic, writing in a note, reported by CNBC that “overarching concerns in the U.S.-China economic relationship remain … [and] are not ones that we believe can be easily tackled in a 90-day period.”

Report: U.S. Continues to Lead Global Online Video Consumption

With the United States the birthplace of subscription video-on-demand, YouTube and other over-the-top video platforms, it should be no surprise that it leads Europe in the consumption of video on smart phones and TVs.

But Europe is catching up, according to new data from Ampere Analysis.

The London-based research firm found that 32% of broadband users in the U.S. streamed video on their smartphone in the third-quarter (ended Sept. 30) compared to 23% in Europe. Consumption of OTT video on the TV was 66% in the U.S. and 60% in Europe.

Indeed, Europeans now consume more online video on the computer, including laptops and tablets (65%) than do Americans (61%).

“As online video viewing in the U.S .continues to grow, consumers are watching TV and film content on a wide range of devices, especially smart TVs and smartphones,” analyst Hannah Walsh said in a statement.“While the online video sector in the US has developed faster than European markets, a similar trend can be seen in both regions.”

Ampere found that 47% of U.S. survey respondents preferred using OTT video platforms (19% very strongly) to watch movies and TV shows compared to 35% (11%) in Europe.

“As [SVOD] continues to progress in European markets, the proportion of consumers who watch video on smartphones will rise, alongside the number of consumers who use online video services as their main way to watch TV,” said Walsh.