A study from Digital TV Research has found that the Western European subscription video-on-demand (SVOD) market is set to enjoy very strong growth in the period to 2022. The analyst has already found that SVOD is the largest over-the-top (OTT) revenue source in the leading 18 economies in the region, overtaking in 2016 advertising-based on-demand offers, and according to its Western Europe OTT TV & Video Forecasts report, the analyst predicts that SVOD revenues will increase to USD 6.5 billion by 2022, up from USD 2.8 billion in 2016. The study revealed that OTT TV episode and movie revenues for 18 Western European countries are set to reach USD 14.65 billion in 2022; more than double the USD 6.90 billion recorded in 2016. Revenues are expected to climb by USD 1.69 billion in 2017 alone.
The revenue growth will be driven by a commensurate spike in subscribers. Digital TV Research forecasts that in gross terms — accounting for the fact that one household can pay for more than one platform — there will be 65.07 million SVOD subscribers by 2022, up from the 33.96 million recorded by the end of 2016. About 10.69 million subscribers are set to be added this year. The analyst expects that by 2022, more than a third of Western European TV households will subscribe to an SVOD platform, up from just under a fifth at the end of 2016. Projections suggest that Germany, Italy, France and Spain will all still be under the regional average by 2022. Sweden is set to have more SVOD subscribers than Spain in 2022, despite only having a quarter of the population.
“SVOD penetration is higher the further North that you travel,” said Simon Murray, principal analyst at Digital TV Research. “Penetration will be particularly high in the Scandinavian countries, which have high pay TV, broadband and smartphone penetration. There are also plenty of platforms on offer.”
The Western Europe OTT TV & Video Forecasts report also found that Netflix will remain the largest pan-regional SVOD platform by some distance, with an expected 29.61 million paying subscribers in 2022 – or 46 percent of the region’s total (down from a 55 percent share in 2016). The research calculated that Amazon Prime Video will be the second largest platform by 2022, with 15 million paying subscribers. - Rapid TV News