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 1B users worldwide in 2021 and is projected to generate over $100B in revenue by 2024.
SVoD to Reach $100B Revenue By 2024 – Projected To Be $71B in 2021
Subscription-based Video-on-demand (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.
Revenue from the SVoD segment amounted to $59B in 2020, after experiencing a 31.6% increase from 2019’s almost $45B revenue. Revenue is expected to grow a further 20.4%, reaching $71B in 2021. SVoD revenue is expected to first surpass the $100B mark in 2024 and grow at a Compound Annual Growth Rate (CAGR) of 11.04% from 2021-2025, reaching $108B by the end of the forecast period.
The United States generates the most revenue from the SVoD segment, amounting to $32B in 2021. China is a distant second with a recorded revenue of just under $12B for the same reporting period. Notably, the next three countries in the top five SVoD revenue rankings all registered revenues of under $3B.
SVoD To Surpass 1B User Mark in 2021; Global Penetration rate at 12.9% in 2021
The number of SVoD users increased by 20.4% in 2020 reaching an estimated 958.6M. SVoD is expected to cross an important milestone in 2021 as it surpasses 1B users worldwide. From 2021-2025, the number of SVoD users globally is expected to grow at CAGR of 7.19% reaching 1.4B 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.
Rex Pascual, editor at Trading Platforms, commented:
“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.”