The rise in original content creation and the proliferation of digital platforms accelerated the global subscription video on demand (SVOD) services market growth. Frost & Sullivan’s recent analysis, “Global SVOD Services Market,” finds that the general growth of digital media consumption has encouraged companies from the sports, film, and television industries to create their own platforms, providing people with more streaming video choices and SVOD services. The SVOD market is expected to reach $151.49 billion by 2028 from $87.30 billion in 2021, registering commendable growth at a compound annual growth rate (CAGR) of 8.2%.
“The COVID-19 outbreak presented a unique expansion opportunity in the home entertainment industry,” said Lara Forlino, ICT Research Analyst at Frost & Sullivan. “Further, the higher demand for video streaming services rapidly increased the number of businesses launching new SVOD platforms. Technological advances, such as artificial intelligence (AI), machine learning (ML), and virtual reality, are creating unprecedented market opportunities and changing the way customers interact with SVOD platforms. This encourages companies to use the latest technologies to enhance user experiences, improve their streaming services and unlock new revenue streams.”
The rise of the SVOD market presents lucrative growth opportunities, including SVOD providers can cater to younger peoples’ interests by integrating emerging technologies, such as virtual reality, augmented reality, and mixed reality, that have the potential to make the streaming experience more immersive and interactive. Moreover, vendors are leveraging the latest technological advances to improve streaming quality and protect video against piracy, and SVOD operators diversify and offer multiple pricing options to access content, including a free ad-supported tier. Finally, SVOD platforms leverage their considerable investments in exclusive content to avoid subscriber churn, attract new audiences and expand their reach.