Report: 20% of European TV Homes to Have SVOD by 202027 Aug, 2014 By: Erik Gruenwedel
More than 59 million European households — 20% of the Euro pay-TV market — are projected to pay for subscription streaming video services by 2020, according to new data from Digital TV Research.
With the arrival of Netflix in six European countries as early as next month, SVOD subscriptions are expected to approach 18 million by the end of the year. In addition to Netflix, Amazon Prime Instant Video and other regional services underwritten by multichannel video program distributors represent a growing international SVOD market.
That tally was less than 2 million in 2010 when Prime predecessor Lovefilm Instant launched in the United Kingdom and Germany.
The report contends nearly 7% of Eastern European TV households (11 countries) will subscribe to SVOD by 2020, compared with almost 30% in Western Europe (15 countries).
Online television and video subscription revenue is expected to reach $1.6 billion this year, and top $5.5 billion in 2020. The United Kingdom will remain the SVOD revenue market leader, although Germany will be close behind.
Meanwhile, online TV and transactional video rental revenue is projected to increase from $55 million in 2010 to $858 million in 2020. Digital sales movies and TV shows are forecast to top approach $1.4 billion in 2020, up from $89 million in 2010.