The video streaming subscription segment has never been more popular after receiving a boost in engagement during the pandemic-stricken year of 2020, and is set to reach even greater heights. According to data presented by Trading Platforms, the video streaming segment will pass 1 billion users worldwide in 2021 and is projected to generate over US$100 billion in revenue by 2024.
SVOD services like Netflix have almost become ubiquitous in households in many of the world’s most developed markets. 2020 was a particularly strong year for the segment as the coronavirus pandemic kept people indoors with most businesses shut due to lockdowns, causing engagement to surge.
In fact, revenue from the SVOD segment amounted to $59 billion in 2020, after experiencing a 31.6% increase from 2019’s almost $45 billion revenue. This number is expected to grow a further 20.4%, reaching $71 billion in 2021. Furthermore, SVOD revenue is expected to first surpass the $100 billion mark in 2024 and grow at a Compound Annual Growth Rate (CAGR) of 11.04% from 2021-2025, reaching $108 billion by the end of the forecast period.
The United States generates the most revenue from this segment, amounting to $32 billion in 2021. China is a distant second with a recorded revenue of just under $12 billion for the same reporting period. Notably, the next three countries in the top five SVOD revenue rankings all registered revenues of under $3 billion.
The number of SVOD users increased by 20.4% in 2020 reaching an estimated 958.6 million. Therefore, SVOD is expected to cross an important milestone in 2021 as it surpasses 1 billion users worldwide. From 2021-2025, the number of users globally is expected to grow at CAGR of 7.19% reaching 1.4 billion users by the end of the forecast period.
The global penetration rate for the SVOD segment was recorded at 12.9% in 2020, which is projected to increase to 14.3% in 2021. This figure is expected to sustain a stable rise in the coming years reaching 18.2% in 2025. As of 2021, the United States leads the world in SVOD penetration rate at 45.7%, followed by Sweden at 40.4%. The United Kingdom rounds out the top five with a 35.5% penetration rate.
“The popularity of streaming services like Netflix was already well-recognized even before 2020’s pandemic. But the lockdowns imposed all over the world caused a spike in engagement that exceeded even the most liberal of projections. Expect the segment to build on this momentum as it looks to take over broadcast media in the coming years,” commented Rex Pascual, Editor at Trading Platforms.
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