Western European SVoD Revenues to Increase to $6.5 billion by 2022

According to Digital TV Research, Western European SVoD (subscription Video on Demand) revenues will increase to $6.5 billion by 2022, up from $2.8 billion in 2016. SVoD has become the region’s largest OTT revenue source in 2016 by overtaking AVoD (advertising based Video on Demand). According to the Western Europe OTT TV & Video Forecasts report from Digital TV Research, SVoD’s share of OTT revenues will continue to grow.

OTT TV episode and movie revenues for 18 Western European countries are forecast to reach $14.65 billion in 2022; which is more than double the $6.90 billion recorded in 2016. For 2017 alone, revenues are expected to climb by $1.69 billion.

By 2022 it is forecast that SVoD subscribers will reach 65.07 million, which is up from 33.96 million at the end of 2016. Around 10.69 million subscribers are forecasted to be added this year.

Source: Digital TV Research: SVoD Subscribers with the chart only showing the top and bottom five countries with the report covering 18 countries.

Simon Murray, principal analyst at Digital TV Research said that the figures are for gross SVoD subscriptions, where one household can pay for more than one platform. He also pointed out that multiple SVoD subscriptions are already popular in Scandinavia and the UK and that growth will be much more modest in countries such as France, Italy and Spain. He further stated that Sweden will have more SVoD subscribers than Spain in 2022, despite only having a quarter of the population. He further pointed out that SVoD penetration is higher the further North you travel.

It is also forecast that by 2022, 37.1% of Western European TV households will subscribe to an SVoD platform; which is up from 19.7% at the end of last year, and this means that Germany, Italy, France and Spain will all still be under the regional average by 2022.

Digital TV Research believes that Netflix will remain the largest pan-regional SVoD platform by some distance, with an expected 29.61 million paying subscribers in 2022; which represents 46% of the region’s total, and down from a 55% share last year. Amazon Prime Video is expected to have 15 million paying subscribers and will be the second largest platform by 2022.

Western Europe SVOD subscribers as a percentage of TV households in 2022Source: Digital TV Research. Note: This chart only shows the top and bottom five countries. The report covers 18 countries.