Mobile to provide 40% of SVOD subscriptionsMonday, July 6th, 2020
Smartphones to provide 40% of SVOD subscriptions
The SVOD sector is growing rapidly. There will be 1,161 million SVOD subscriptions by 2025; up from 642 million at end-2019.
However, global players cannot rely on direct fixed broadband subscriptions alone to boost numbers. SVOD subscriptions via direct fixed broadband connections will reach 526 million by 2025 – or 45% of the total. A further 176 million – 15% of the global total – will be achieved indirectly via partnerships with pay TV operators.
Fixed broadband penetration is low in many emerging markets, so smartphone connections are important. By 2025, 291 million SVOD subscriptions – or 25% of the global total – will come direct to the SVOD platforms via mobile apps.
Another 170 million – 15% of the global total – will come indirectly via mobile operators. Therefore, 40% of SVOD subscriptions will be through smartphones by 2025.
By 2025, 30% of global SVOD subscriptions – or 346 million – will be indirect either via a partnership with a mobile operator or through a distribution deal with a pay TV operator.
Simon Murray, Principal Analyst at Digital TV Research, said: “A major advantage to SVOD platforms of partnerships with local mobile or pay TV operators is immediate access to their subscribers. Local players can also undertake billing in local currencies. The operators gain commissions and kudos from carrying the SVOD platforms.”
Netflix has expanded the number of these partnerships rapidly in recent years. From the 493 operators surveyed, Netflix has deals with 111 of them. After a slow start, Amazon Prime Video is rapidly increasing its partnerships, with 52 recorded.