Strategy Analytics: U.S. dominates global SVOD market with 43% revenue share in 2019
Although the global SVOD service subscribers continue to grow at an alarming rate, revenue is still highly concentrated in a few markets. According to the latest SVOD forecast report “Global SVOD Forecast (2010-2025) by Service” published by Strategy Analytics’ TV and Media Strategies (TMS) service, global consumer spending on SVOD services in 2019 was $53.34 billion (approximately €47.75 billion). ). The US accounted for 43%, followed by China (17%), Germany (4%) and the UK (4%). Overall, the top ten countries accounted for 81% of total consumer spending on SVOD services.
Global consumer spending on SVOD services will grow to $102.86 billion (approximately €91.7 billion) by 2025. Of these, the United States will account for 44%, followed by China (15%) and Germany (5%).
Factors driving the dominance of U.S. consumer spending on SVOD services include the following.
·Although there are a few countries on par with the US, overall, US TV users are more likely to subscribe to SVOD services than other countries. In 2019, 74% of U.S. TV subscribers subscribed to one or more SVOD services. This compares with a global average of 32%.
· US SVOD users are more likely to subscribe to multiple services than SVOD users in other regions. US SVOD users subscribed to an average of 2.45 SVOD services in 2019, which will grow to 3.21 in 2025. In comparison, global SVOD users subscribed to an average of 1.54 SVOD services in 2019, which will grow to 1.82 in 2025.
Although SVOD services vary by country and service, the U.S. tends to be more expensive than other countries. In Denmark and Switzerland, for example, Netflix is much more expensive than in the US. Globally, the average spend per SVOD service in 2019 was $6.24 (€5.56); in the US, the average spend per SVOD service was $10.22 (€9.11), 63% higher than the global average. Given that every SVOD household in the US subscribes to multiple services, they spend an average of $22.52 (€20.08) per month on SVOD services, compared to just $9.26 (€8.25) globally.
“Whether it’s pay-TV, video rental and sales, or subscription video-on-demand, U.S. consumers have historically shown a willingness to pay significantly higher prices than most other countries,” said Michael Goodman, Director of Strategy Analytics’ TV and Media Strategy Service. Willingness to buy these products and services. The world has its own local SVOD services, and these services must be realistic about the ultimate potential for SVOD benefits, and their model cannot be based on U.S. demand levels.”
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