COVID-19 Pandemic Marks a New Era for SVOD as Both Market Demand and Competition Intensify
This study covers the global market for SVOD services that go over the top (OTT), meaning that providers distribute them directly to customers over a public internet connection. The study excludes other means of delivering on-demand content, such as satellite services or internet protocol TV (IPTV). The booming SVOD market presents immense growth potential. In 2021, the global SVOD market earned revenues of $87.30 billion, an increase of 24.5% over 2020.
Growth in 2021 was mainly attributed to an increase in paid subscriptions (led by the creation of original content), the acquisition of top-tier programming, and the proliferation of platforms available. The COVID-19 pandemic has catalyzed the SVOD market since 2020. Both revenues and paid licenses increased at extraordinary rates, leading to more companies entering the market and numerous new offerings in the space. While SVOD companies covered in the study can offer advertising-based video on demand (AVOD) or transactional video on demand (TVOD) services as part of their portfolio, pure AVOD or TVOD participants are excluded from the research.
This research does not provide individual regional forecasts for SVOD services, but the publisher does provide 2020 versus 2021 revenue market splits by region, including North America; Europe, the Middle East and Africa (EMEA); Asia-Pacific (APAC); and Latin America. The study period is 2019-2028.
Primary and secondary information, in conjunction with internal information databases, underpin the market analysis, observations, and conclusions.
Research Highlights
Even though COVID-19 no longer has the same effect as it did initially, the SVOD market has plenty of room to expand. Three main factors will drive market growth, in terms of revenues and paid licenses:
- Younger generations prefer VOD services rather than pay TV because they are cheaper and offer the flexibility to watch content at any place and time.
- More people will have access to ever faster internet connections and smart devices in upcoming years, boosting the total addressable market for SVOD services.
- Penetration of SVOD services into regions such as Latin America or Africa remains limited but will continue developing.
