SVOD subs to grow by 485m

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SVOD subs to grow by 485m
MAY 16, 2022 08.32 EUROPE/LONDON BY CHRIS DZIADUL

Global SVOD subscriptions are forecast to by 485 million between 2021 and 2027 to reach 1.69 billion.

According to the latest report from Digital TV Research, six US-based platforms will have 988 million paying SVOD subscribers by 2027, up from 612 million in 2021.

Commenting on the findings of the report, Simon Murray, principal analyst at Digital TV Research, said: “Our Netflix forecasts for 2027 are 29 million lower than our February update – at 253 million. Netflix needs to boost its content to counter its fresher and cheaper rivals”.

Netflix will add 31 million subscribers between 2021 and 2027, despite losing 4 million subscribers in North America.

Meanwhile, Disney+ will overtake Netflix in 2025, adding 144 million subscribers between 2021 and 2027 to take its total to 274 million.

Disney+ Hotstar will roll out to 13 Asian countries by 2027. These will supply 114 million (42%) of the global Disney+ subscriber total, but only $1.58 billion (11%) of Disney+’ revenues [$14.7 billion] by 2027.

Netflix will remain the revenue winner, with $34 billion by 2027 – similar to Disney+, HBO Max and Paramount+ combined. However, the Netflix total will be only $4 billion more than 2021 as subscriber growth decelerates and ARPU is squeezed.

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SVOD subscriptions to grow by 485 million over next five years
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Editor
| 16 May 2022
No end seems to be in sight for the booming subscription video-on-demand (SVOD) sector with a study from Digital TV Research forecasting that customer numbers will reach 1.69 billion by 2027.
Netflix French 9Feb2022

The Global SVOD Forecasts report forecast that six US-based platforms will have 988 million paying SVOD subscribers by 2027, up from 612 million in 2021. Netflix will add 31 million subscribers between 2021 and 2027, despite losing 4 million subscribers in North America. Digital TV Research noted that its latest Netflix forecasts for 2027 were now 29 million lower than its February update, standing at 253 million. The analyst added that Netflix needs to boost its content to counter its fresher and cheaper rivals.

And of the competition, the study forecasts that Disney+ will overtake Netflix in 2025 as it adds 144 million subscribers between 2021 and 2027. If this growth is realised, this would take the company’s total to 274 million. The House of Mouse will see the bulk of customer growth come from its Disney+ Hotstar direct-to-consumer line which is set to will roll out to 13 Asian countries by 2027. These countries will supply 114 million (42%) of the global Disney+ subscriber total, but only $1.58 billion (11%) of projected Disney+ revenues of $14.7 billion by 2027.

Netflix is set to remain the revenue winner, with $34 billion by 2027 – similar to Disney+, HBO Max and Paramount+ combined. However, the Netflix total would be only $4 billion more than 2021 as subscriber growth decelerates and ARPU is squeezed.

The Global SVOD Forecasts report also noted that behind two leaders in terms of customer numbers by 2027 would be Amazon on 252 million; Paramount+, 91 million; HBO, 89 million; and Apple TV+, 30 million.