The streaming video business is booming. Every day more and more consumers are cutting the cord in favor of a subscription video on demand (SVOD) service like Netflix or Hulu. And while the U.S. has one of the most active streaming markets, with more than 60 percent of households partaking in the streaming renaissance, the rest of the world is catching up.
Analysts project global subscriptions to over-the-top (OTT) services — like Netflix, Amazon, and HBO Now — to increase by 409 million between 2017-2023, according to new research carried out by Digital TV Research. This will amount to roughly 777 million consumers worldwide subscribing to at least one streaming service.
The U.S. and China are set to have most of the subscribers. Together, the countries will account for more than half the world’s SVOD subscriptions by 2023. China’s SVOD market will experience tremendous growth during this period of time, totaling 235 million subscribers by 2023 — up from 97 million in 2017.
“The U.S. will have 208 million SVOD subscriptions by 2023; up by an impressive 76 million on 2017 despite its relative maturity. Its share of the global market will fall from 36 percent in 2017 to 27 percent by 2023,” notes Simon Murray, principal analyst at Digital TV Research.
Netflix will remain relatively dominant in the global space. By 2023, per the report, the streaming giant will have a total of 192 million subscribers (or 25 percent of the 777 million) — up from 128 million as of Q2 2018. This puts it in second to China where neither Netflix or Amazon operate and the market is instead dominated by native services like Baidu’s iQIYI and Alibaba’s Youku Tudou. By 2023, China is projected to account for 30 percent of all SVOD subscribers.
Overall, the Digital TV report projected that SVOD revenues will reach $69 billion by 2023, which is up by nearly $44 billion since 2017. The U.S. will continue to lead in streaming revenue, adding $17 billion between 2017 and 2023, bringing its total to $29 billion.