SVOD to Surpass TV by 2021

Digital TV Research predicts that North America will have 112 million SVOD subscribers by the end of this year, an increase of 19 million from 2015.

That number, which accounts only for movie and TV services, is expected to climb to 138 million by 2021, exceeding the 117 million total TV households in North America. That discrepancy is due, in part, to TV households having more than one SVOD subscription.

For example, in 2021, in the U.S., the typical SVOD subscriber is expected to pay for roughly 1.5 services.  Of 127 million U.S. SVOD subscriptions, 43 million will be secondary accounts; 84 million – 71% of TV households – will be “primary SVOD users.”

Simon Murray, Principal Analyst at Digital TV Research, said, “It is important to stress that … some homes take more than one SVOD platform, especially in the US.”  He added, “Our forecasts include Amazon Video – some other forecasts do not. Amazon Prime subscribers do not directly pay for Amazon Video. However, to give as full a picture of the sector as possible, we calculate that 60% of Amazon Prime subscribers watch Amazon Video. For these homes, we have devoted half the Amazon Prime fee to Amazon Video.”

The number of U.S. Amazon Video subscriptions is forecast to grow from 30 million in 2015 to 49 million by 2021. Netflix is forecast to have 59 million paying SVOD North American, 52 million in the U.S., by 2021, with total revenues of $6.85 billion, up from 5.36 billion in 2016.

About Larry Greenberg

A former local beat reporter and film critic, co-founder Lawrence Greenberg has more than 25 years’ experience as a writer and public relations executive.

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