SVOD and Broadcast TV Will Have Same Viewing Times by 2023
In only four years, the global average viewing time for SVOD content will rise enough that it will equal the amount of broadcast TV watched. That prediction comes from a report released today by Rethink Technology Research.
Dig deeper into the research and geographic differences appear. Asia streams more ad-supported content, while the U.S. and Europe stream more from subscription services.
North America is the biggest market financially, but not by viewers. China will have more SVOD subscribers by 2023, but North America will still count the most spending. Globally, there are 478 million SVOD subscribers now, which will rise to 732 million in 2023.
The U.S. currently has 146.5 million streaming video customers, which includes on-demand and skinny bundle accounts. By 2023, that number will rise to 236.6 million. Netflix will continue as the SVOD leader, although its market share will diminish. In the U.S., Netflix now counts for 44% of all subscriptions, but that will fall to 31% by 2023. Globally, it will have 194 million customers by 2023, or 26% of the total base of 743 million streaming customers.
Looking at new entrants, Rethink predicts WarnerMedia's upcoming service will succeed with a freemium strategy, gaining access to 29.6 million U.S. homes by 2023. It sees Disney having a difficult time with streaming services outside the U.S.
In a separate report, Grand View Research forecasts that the global streaming market will be worth $124.6 billion by 2025.
The total number of subscriptions will grow by 439M from 2018 to 2024—an 86% increase—reaching 947M. In 2019 alone, the number will increase by 119M.
Three services are enough, say many households. With so many choices, consumers wonder which are essential and which they need to drop.
As the streaming video market gets more crowded, consumers get more confused. Look for aggregation services to grow in importance, with Apple and Amazon taking the lead.
All eyes are on connected TV: 44% of video ad impressions in Q4 2018 were on CTV, a massive jump from 15% just one year prior.
Dish Network's live streaming service tackles mass personalization and aggregation in an effort to create something viewers can't get anywhere else.
The average SVOD subscriber takes 2.03 accounts. That will grow to 2.35 accounts in 2023, Digital TV Research forecasts.
Young adults lead the way in streaming video, but growth has slowed for that demo. Older adults are now joining in and subscribing to more services.