SVODs Reach 60% of North American Households, Finds Futuresource

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Subscription video-on-demand (SVOD) services will have a strong 2019 with revenues up 25% to a total of $36 billion this year. Total spend for 2018 was $29 billion, a 38% rise over 2017. Futuresource Consulting reveals the data in a new report.

News 1A perfect storm of conditions has enabled SVOD's quick rise, says David Sidebottom, principal analyst for Futuresource. These include stronger broadband connectivity, connected TV growth, a variety of services, and good perceived value.

SVOD services now stream to 60% of North American households, as well as 26% in Western Europe, 21% in Asia-Pacific, and 19% in Latin America.

Futuresource has advice for new services looking to take on Netflix: Don't do it. Complementary services have a better chance of success than direct competitors, it says. Niche services can earn a following by offering exclusive, relevant, and local shows, especially outside the United States.

As competition increases and consumers become confused by the number of options, content aggregation services and partnerships between SVODs and pay TV will become more important. Amazon and Apple should do well, as both have large and established user bases.

"This new breed of ‘super aggregators’ will become an important component in the battle for the living room, though, in many instances, they have yet to fully realize the three consumer requirements of quality, original content, and price," Sidebottom adds.

 

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