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Worldwide SVOD Markets Expected To Increase PowerPoint PPT Presentation


There is a huge exponential growth opportunity for video on demand services. European Broadcasting Union reports that European households subscribing to VoD services are expected to hit 50 million by 2020. This opens more opportunities for companies providing video on a subscription business model.

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Worldwide SVOD Markets Expected To Increase

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Worldwide svod markets expected to increase

Worldwide SVOD

markets expected

to increase

© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

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Worldwide svod markets expected to increase

Worldwide SVOD markets expected to increase

It's hard to imagine that video on demand services haven't completely engulfed the

world, but there is still room for an exponential amount of growth. This is especially true

in foreign markets like China, India and Brazil. If expectations are correct, then

companies providing video on a subscription business model should definitely keep an

eye on these areas.

SVoD in Europe to double over four years

A report from the European Broadcasting Union found the

number of European households subscribing to VoD services

is expected to hit 50 million by 2020. Currently, almost 11

percent of Europeans subscribe to online video content, led by

users in the U.K., the Netherlands and Ireland. The report also

found that the number of subscribers grew 56 percent between

2014 and 2015.

"The number of

SVoD viewers

grew 56 percent

between 2014

and 2015."

One might expect Netflix to completely dominate this region. While the streaming service

holds 52 percent of the current market, Amazon is catching up while competition from

other companies is also increasing.

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© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.


Worldwide svod markets expected to increase

Sports and SVoD in China

Forecasts from Pyramid Research expect Chinese SVoD users will grow to 28.3 million

in number this year, generating over $1.2 billion in revenue. This outlook is due to the

increasing number of fiber internet connections within the region, which catapulted from

66 million to 117 million between 2014 and 2016.

Most of the interest in SVoD comes from the access to exclusive content – sports games,

in particular. Chinese subscribers enjoy the real-time interaction many SVoD services

offer, and the nation's leading over-the-top content providers offer more English Premier

League games than other video services, most notably free-to-air platforms.

"It is fascinating to see that OTT plays a bigger role in securing exclusive rights for paid

sports content in China," said Hansang He, an analyst at Pyramid Research. "As FTA

platforms find it more challenging to pinpoint sports viewers to shore up advertisement

revenue, OTT players will seek further differentiation with premium sports, which can be

as valuable as extensive film and television libraries.“

Video slow but promising in India

Meanwhile, online video revenue in India recently hit $213 million, putting it far behind

the $9 billion pay-TV market, Media Business Asia reported. However, OTT should pick

up speed in the region as more consumers and businesses gain access to high-speed

internet, and the market is expected to hit $125 million by 2020.

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© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.


Worldwide svod markets expected to increase

In addition, several pay-TV broadcasters are adding video through an online subscription

business model. Star, for example, recently announced a streaming service that provides

HBO original programming for $3 per month.

India is still a new market for SVoD and other forms of

content, meaning businesses will have more luck if they

target niche interests rather than attempt to appeal to all

viewers. Taking the latter approach puts them in direct

competition with more established broadcasters with larger

budgets for both programming and advertising.

"India is still a new

market for SVoD and

other forms of

content."

Still, Media Business Asia pointed out content providers will have to create an

environment where customers are comfortable with online payments if they hope to see

the same success as streaming video in other countries.

SVoD drives content in Latin America

Latin America is also expected to see exponential growth over the next few years. A

report from Digital TV Research anticipates the market will jump from $1.1 billion in 2015

to $3.6 billion in 2021. Brazil and Mexico will lead this growth, adding $938 million and

$437 million, respectively.

Over this time period, more Latin American households will subscribe to SVoD services,

bringing the total to 24 million homes. These subscriptions will contribute 58 percent –

$2.1 million – to the market by 2021.

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© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.


Worldwide svod markets expected to increase

About the Author: Bryta Schulz

Bryta joined Vindicia in 2013 and serves as Senior Vice

President of Marketing. She is responsible for building brand

awareness, creating go-to-market strategy and promotion, and

driving growth. With over a decade of executive level marketing,

product management and PR experience, Bryta has led

marketing teams in enterprise technology and SaaS companies.

Her experience includes heading product marketing at GoGrid,

PGP, RSA and Symantec and business development and

product management positions at Xcert, Thales, and

Persistence Software. Bryta holds a MA in Translation from the

Johannes Gutenberg University Mainz and an MBA from the

University of Reutlingen.

Visit our Blog for more information.

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© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.


Worldwide svod markets expected to increase

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© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

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