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Subscription video on demand continues to rise in North America

Roshan Dwivedi Published on : 26 May 2017
subscription VOD

Subscription Video on Demand (SVOD) services continues to come in the way of traditional video entertainment in major markets worldwide. The North American market has been proven to offer innovative new offerings. It is estimated that North America will have 112 million SVOD subscribers that are exclusively for movie and TV services except sports by end of 2016. This is higher than 2015. It is expected that SVOD total will climb to 138 million by 2021. By 2021, 117 million TV households in the market are expected to be included in this number so the total SVOD will comprise of 104% of all TV households in the region.

It is estimated that the average SVOD subscriber in the U.S market will pay for 1.5 services. From the 127 million U.S. total in 2021, the study predicts that 43 million will be ‘secondary’ SVOD subscriptions. There will be 84 million primary SVOD users in the U.S. market by 2021 – which translates to about 71% of the TV households. These forecasts include Amazon Video, some other forecasts do not. It was also found that subscribers to Amazon Prime do not directly pay for Amazon Video. 60% of Amazon Prime subscribers watch Amazon Video according to the Digital TV Research assessment. For these homes, half the Amazon Prime fee was devoted to Amazon Video. In North America, the number of Amazon Video subscriptions will grow from 30 million in 2015 to 49 million by 2021. Amazon video will be started in Canada in 2017 and will have 51 million subscribers in North America by 2021. Revenues of about $2.48 billion will be generated. 59 million paying SVOD subscribers in North America are predicted by 2021 which is up from 53 million at the end of 2016. The U.S. market will provide 52 million of the 2021 total. Netflix’s North American SVOD revenues will increase from $5.35 billion in 2016 to $6.85 billion in 2021. Read More

Written by: Roshan Dwivedi

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