Subscription Video On Demand

Subscription Video On Demand

Statistics and facts about the SVoD market

The digital video market shows promising figures for the next few years. The number of digital video users worldwide is expected to rise from nearly 400 million in 2014 to over 800 million in 2020. Rentals or subscription-based services (SVoD) such as Netflix, Hulu and Amazon Prime Instant Video are expected to account for 30 percent of this total, with forecasted revenues of around 15 billion U.S. dollars by 2020. About half of this total revenue is projected to be generated in the United States, one of the SVoD biggest markets in the world. Amongst all digital video services in the U.S., SVoD has the second highest penetration rate – around 20 percent. This figure is expected to reach 30 percent by 2020. As of May 2015, already around 30 percent of TV viewers in the U.S. used their TV set to stream Netflix.

Netflix, the leading streaming media provider in the United States, already had a 30 percent penetration rate in the U.S. as of the second quarter of 2014. With 5.5 U.S. dollars in revenues in 2014, Netflix’s growth is expected to continue over the next few years. The number of Netflix users in the U.S. is projected to round up from 95 million users in 2014 to 143 million by 2019. Original programming, convenience of on-demand streaming programming, cost effectiveness and range of content are a few of the leading reasons users choose Netflix over its main competitors, Hulu and Amazon Prime Instant Video. Netflix has a strong presence across the country, San Francisco, Los Angeles and Washington D.C. as the top three leading SVoD markets for the company.

Amazon Prime Instant Video, a service offered by the billion-dollar internet retailer Amazon, also has a particularly significant presence in the digital video market in the nation’s capital, Washington D.C., as well as in Seattle. In both cities, 26 percent of households with a VOD access have an Amazon Prime Instant Video subscription. There were 65.2 million Amazon Prime Instant Video users in the United States in 2015. This figure is expected to grow to 88.6 million in 2019.

Hulu, also a major player in the video streaming service market, has similar growth projections. The number of Hulu users in the United States is forecasted to amount to 82.2 million by 2019, up from 51.6 million in 2014. Over-the-top (OTT) devices are popular among Hulu subscribers, as 60 percent of Hulu viewers used the service on OTT devices. It is forecast that, by 2019, Hulu will account for 41.2 percent of all OTT video service users in the United States.

Picture: / foxumon

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