What is SVOD?
Subscription Video on Demand (SVOD) is a Film & TV distribution method that allows viewers to access unlimited streaming of video content for a fixed monthly or annual fee. This model is favoured for its convenience and user-friendliness, making it popular worldwide. With SVOD, you can watch an extensive range of movies, TV shows, and documentaries on various devices such as tablets, smartphones, computers, and TVs. The key appeal of SVOD services is their ability to provide vast libraries of on-demand content without the interruption of advertisements.
How Popular is SVOD in 2024?
SVOD has experienced remarkable growth over the past few decades, solidifying its position as the leading model in the VOD market. As of 2024, SVOD boasts a large subscriber base, with projections indicating it will reach 1.6 billion global users by 2027. Interestingly, statistics show that, on average, individuals subscribe to three different SVOD services. This number was even higher in the past, but despite the model's soaring popularity in recent years, SVOD appears to have hit its peak, as the number of services per household has begun to decline in several markets for the first time.
This shift can largely be attributed to users gravitating towards more economical or free versions of video streaming, such as AVOD (Advertising-Based Video on Demand) or FAST (Free Ad-Supported Streaming Television). However, despite these emerging trends, SVOD remains the most favoured ways to consume film and TV content worldwide with North America and the Nordic countries lead in terms of SVOD service penetration.
Global SVOD Giants and Niche Players
In the dynamic realm of Subscription Video on Demand (SVOD), several key players continue to shape the industry landscape in 2024. Leading the charge globally are Netflix, Amazon Prime Video, and Disney+, which collectively account for a whopping 85% of viewing time on subscription based SVOD platforms across Europe.
Netflix stands out as the most recognized brand in the SVOD world, boasting over 260 million subscribers worldwide, although some portion of this subscriber base comes from its recently introduced ad-supported tier. Netflix’s success is largely due to its extensive library of high-quality original content and a robust strategy for international expansion, making it a favourite among diverse audiences worldwide.
Amazon Prime Video reports about 117 million subscribers, appealing to a broad audience with its mix of original programming, extensive licensed content, and the flexibility to add various video channels. Integrated into the broader Amazon Prime service, it offers added value that extends beyond streaming, contributing to its massive appeal.
Disney+ has quickly established itself as a major player in the SVOD market, with subscriber numbers surpassing 150 million since its launch in late 2019. The platform's rapid growth is fuelled by an impressive portfolio that includes Disney classics, Pixar animations, Marvel films, Star Wars series, and National Geographic documentaries.
While these giants dominate on a global scale, there are significant players in regional and niche markets that also command attention. For instance, iQIYI, the leading Chinese streaming service, reported having 128.9 million subscribers as of the first quarter of 2023. Its success highlights the vast potential of localized content tailored to the preferences of Chinese audiences.
In niche markets, services like Shudder, which specializes in horror and thriller genres, and Crunchyroll, known for its comprehensive anime offerings, cater to specific segments of viewers seeking content that resonates with their unique tastes.
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