U.S. SVOD Subscriptions on Pace to Pass 300 Million by 2025
The number of SVOD subscriptions in the United States is on pace to grow more than 50% in the next 5 years, from 199 million today to 307 million in 2025, according to analyst Digital TV Research. But when that aggregate number is broken down by household, it might not seem quite so significant.
"The average SVOD household will pay for 3.28 SVOD platforms by 2025; up from 2.28 at end-2019," says the firm's Simon Murray. "So, the average SVOD home will add one subscription between 2019 and 2025."
But that one additional subscription per household will add up quickly, especially for newer entrants. "A dozen platforms will have more than 5 million paying subscribers by 2025—revealing just how far ahead in terms of choice the U.S. market is compared with the rest of the world," Murray says. "Growth for established players such as Netflix and Hulu will be muted due to intense competition from younger rivals such as Disney+, Peacock and the augmented CBS All Access.
Unsurprisingly, Disney+ and CBS All Access are predicted to have most significant growth in subscribers, from 17.3 million to 47.9 million and from 5.7 million to 18.7 million, respectively. That means CBS All Access is set to more than triple its subscriber numbers in the next 5 years. Overall, Netflix is predicted to retain the biggest share of the market, with 65.7 million subscribers by 2025, followed by Amazon's 60.1 subscribers, representing a 4.6 million subscriber increase for Netflix and a 6.1 million subscriber increase for Amazon.
Digital TV Research defines SVOD services as those offering "movies, linear channels, and TV episodes—excluding other platforms such as sports services."
Netflix's "Ozark" led the SVOD original content pack in 2020 with 30 billion minutes viewed, in a year when the average U.S. household subscribed to four streaming services. 2021 looks even bigger.
There's plenty of room for multiple SVOD services. But live linear services are an endangered species unless they change their offerings and pricing models.
Didja's Jim Long and Digital Media Strategies' Josette Bonte discuss the impact of recent developments in the SVOD market in this clip from Streaming Media West 2019.