Dimitar Serafimov| Mon May 28 2018 CET| OTT Industry
In recent years, SVoD services have proved to be among the most dynamic, flexible, convenient and affordable entertainment viewing mediums the world over. But as the market evolves, how affordable is SVoD in three of the most key marketplaces across the globe.
Studies suggest that the European SVoD market is set to double by 2022, expected to reach $6.8 billion in profit in 2022, a significant increase from $3.9 billion in 2017.
But how does the affordability of SVoD services stack up across the continent? This chart offers a solid insight:
By ratio, it’s clear that Russia is the most affordable country concerning monthly online SVoD subscriptions, with an index of 0.06%. This affordability is driven by incredibly high levels of piracy, income inequality, the prevalence of free ad-funded services and a dominant multichannel sector.
On the contrary, the Portuguese SVoD market is the least affordable, with an index of 0.4%.
The US has always been an SVoD market leader, boasting the greatest level of adoption worldwide. In fact, America’s SVoD market is expected to reach an incredible 125 million subscribers by the end of the year.
What’s particularly striking about the USA’s SVoD market is that pay-TV disruption throughout the country is primarily driven by price, as opposed to user experience alone.
As pay-TV providers hike up their prices, consumers, in their droves, are being driven into the arms of SVoD services, curating their own skinny bundles which offer more or less all of the content they need at a fraction of the cost.
Now, while viewing and user experience may not be consistent across the board (some providers are more consistent than others), these bespoke web-driven bundles are far more flexible and affordable than the vast majority of America’s linear TV offerings.
That said, SVoD in the US is particularly affordable, especially when you stack it up against the rising unaffordability of pay-TV.
This chart offers a visualization of the three big players in the US SVoD market:
Asia is home to the planet’s fastest-growing SVoD markets. According to Dataxis, paid SVoD accounts within the region are set to grow from 2.2 million last year to a whopping 6.2 million is 2022, at a 12% CAGR. This translates to a household penetration of 4%.
At present, it seems that SVoD services are affordable to the average subscriber across the continent – but as the market scales and evolves, it will be interesting to see how prices fluctuate.
For consumers, the success of SVoD in Asia will largely depend on broadband improvements and regional deals with telco operators and pay-TV providers, in addition to the ongoing quality of content.
While the affordability of SVoD on an international level fluctuates, differing in value depending on the region, it still remains the agilest, relevant and valuable forces in the world of entertainment – and its global potential is enormous.
Discover how you can succeed with SVOD in the Asia-Pacific region: