The widespread availability of high-speed broadband services and promotional multiplay service bundle plans with free subscriptions to OTT platforms are driving the adoption of subscription video on demand (SVoD) services in the Asia-Pacific (APAC) region. Consequently, the share of the region, in terms of SVoD subscribers, in the global market is set to increase from 40% in 2022 to 44% in 2027, forecasts GlobalData, a leading data and analytics company’.
GlobalData’s latest report, “Video Streaming – Thematic Intelligence [1],” reveals that the global SVoD market is set to increase at a compound annual growth rate (CAGR) of 8.5% from $103 billion in 2022 to $155 billion in 2027. In contrast, revenue from the traditional pay-TV services (cable TV, satellite TV, and terrestrial TV) will decline from $218 billion in 2022 to $194 billion in 2027.
Rupantar Guha, Principal Analyst at GlobalData’s Thematic Intelligence team, comments: “The expanding availability of broadband connectivity, growing smartphone penetration, and the widespread popularity of OTT content among the younger population are fueling the adoption of SVoD services across the APAC region. Telcos are bundling their fiber, mobile, and pay-TV plans with SVoD subscriptions.”
The report reveals that the macro environment, influenced by the COVID-19 pandemic and inflation, has significantly impacted consumer preferences in SVoD. As a result, customers are moving to more affordable and flexible SVoD services or canceling their SVoD subscriptions due to financial pressures.
Guha continues: “Consequently, SVoD players like Netflix, Disney+, and dTV are adopting a hybrid business model and combining SVoD and advertising-based video on demand (AVoD) subscriptions to cater to the changing consumer demands and maintain market control.”
North America was the second largest SVoD market, accounting for 34% of the global subscriptions in 2022. Media conglomerates like Comcast and Paramount are trying to catch up with the tech giants like Netflix, Amazon, and Disney.
Guha concludes: “Broadcasters, studios, and content producers are racing to monetize their content libraries as the streaming wars intensify. Developing partnerships between fixed and mobile broadband service providers and SVoD platforms has brought discounts on subscription prices. Telecom operators and pay-TV providers are increasingly positioning themselves as content aggregators offering a bouquet of SVoD options to cover their customers’ needs.”
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* Quotes provided by Rupantar Guha, Principal analyst at Thematic Intelligence team at GlobalData * Information is based on GlobalData’s report: Video Streaming – Thematic Intelligence [7]. The report identifies the key trends impacting growth of the theme over the next 12 to 24 months, split into three categories: technology trends, macroeconomic trends, and regulatory trends. It includes comprehensive industry analysis, including market size and growth forecasts for the global SVoD market and analysis of trends in patents and company filings. The detailed value chain is split into three main areas: content creation, content aggregation, distribution, and device. Also included are profiles of leading players in the video streaming theme, including Netflix, Amazon, Apple, Disney, and Tencent.
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