Skip to main content

Subscription Video on Demand Trends in North America

Blame Netflix, but they're not alone. Subscription Video on Demand (SVOD) services continue to disrupt the traditional video entertainment sector in major markets worldwide. In addition, North America has been a proving ground for innovative new offerings.

According to the findings from a recent study, North America will have 112 million SVOD subscribers -- that's for movie and TV services only; excluding sports -- by end-2016, which is up by 19 million when compared with 2015. Moreover, the SVOD total is forecast to climb to 138 million by 2021.

However, the North America study by Digital TV Research anticipates 117 million TV households in the market by 2021, so the SVOD total will represent 104 percent of all TV households in the region.

SVOD Market Development Trends

"It is important to stress that these SVOD figures are gross – some homes take more than one SVOD platform, especially in the U.S. market," said Simon Murray, principal analyst at Digital TV Research.

The average SVOD subscriber in the U.S. market will pay for about 1.5 services. From the 127 million U.S. total in 2021, the study predicts that 43 million will be 'secondary' SVOD subscriptions.

Or, put it another way, there will be 84 million primary SVOD users in the U.S. market by 2021 – which translates to about 71 percent of the TV households.

Another important point is that their forecasts include Amazon Video – some other forecasts do not. Moreover, Amazon Prime subscribers do not directly pay for Amazon Video.

According to the Digital TV Research assessment, 60 percent of Amazon Prime subscribers watch Amazon Video. For these homes, they have devoted half the Amazon Prime fee to Amazon Video.

North American SVOD Market Outlook

Applying this methodology, the number of U.S. Amazon Video subs will grow from 30 million in 2015 to 49 million by 2021. Amazon Video is expected to start in Canada in 2017. Amazon Video will have 51 million subscribers in North America by 2021, who will generate revenues of about $2.48 billion.

By way of comparison, Netflix is forecast to have 59 million paying SVOD subscribers in North America by 2021 -- that's up from 53 million at the end 2016. The U.S. market will provide 52 million of the 2021 total. Netflix’s North American SVOD revenues will increase from $5.35 billion in 2016 to $6.85 billion in 2021.

Popular posts from this blog

AI Semiconductor Revenue will Reach $119.4B

The Chief Information Officer (CIO) and/or the Chief Technology Officer (CTO) will guide Generative AI initiatives within the large enterprise C-Suite. They may already have the technical expertise and experience to understand the capabilities and limitations of Gen AI. They also have the authority and budget to make the necessary investments in infrastructure and talent to support Gen AI initiatives. Enterprise AI infrastructure is proven to be expensive to build, operate and maintain. That's why public cloud service provider solutions are often used for new AI use cases. AI Semiconductor Market Development Semiconductors designed to execute Artificial Intelligence (AI) workloads will represent a $53.4 billion revenue opportunity for the global semiconductor industry in 2023, an increase of 20.9 percent from 2022, according to the latest worldwide market study by Gartner. "The developments in generative AI and the increasing use of a wide range AI-based applications in data c

Demand for Quantum Computing as a Service

The enterprise demand for quantum computing is still in its early stages, growing slowly. As the technology becomes more usable, we may see demand evolve beyond scientific applications. The global quantum computing market is forecast to grow from $1.1 billion in 2022 to $7.6 billion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). That's a five-year compound annual growth rate (CAGR) of 48.1 percent. The forecast includes base Quantum Computing as a Service, as well as enabling and adjacent Quantum Computing as a Service. However, this updated forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021, due to lower demand globally. Quantum Computing Market Development In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on inve

Industrial Cloud Computing Apps Gain Momentum

In the manufacturing industry, cloud computing can help leaders improve their production efficiency by providing them with real-time data about their operations. This has gained the attention of the C-suite. Total forecast Industrial Cloud platform revenue in manufacturing will surpass $300 billion by 2033 with a CAGR of 22.57 percent, driven by solution providers enhancing platform interoperability while expanding partner ecosystems for application development. ABI Research found the cloud computing manufacturing market will grow over the next decade due to the adoption of new architectural frameworks that enhance data extraction and interoperability for manufacturers looking to maximize utility from their data. Industrial Cloud Computing Market Development "Historically, manufacturers have built out their infrastructure to include expensive data housing in the form of on-premises servers. The large initial upfront cost of purchasing, setting up, and maintaining these servers is