In just five years, the number of people using subscription-based streaming services has nearly doubled, jumping from 610 million in 2017 to 1.16 billion last year. Streaming has taken the home video market by storm and will continue to outgrow other market segments in the future.
According to data presented by OnlyAccounts.io, the global subscription-based streaming revenue is expected to hit $95.3bn in 2023, 18% more than last year. This figure is forecasted to jump by another 73% in the next four years and hit $137bn in 2027.
United States, China, and the United Kingdom Generate 65% of Total SvoD Revenue
According to Statista Market Insights, global revenue from subscription-based streaming has almost tripled since 2017, topping $80bn in 2022. Physical format sales dropped by nearly 30% in this period, while digital pay-per-view and paid downloads have grown much slower than streaming.
With more and more streaming services available to consumers, Statista expects revenues to increase even further in the next five years. Global streaming revenues are expected to grow at an average rate of 9.5% between 2023 and 2027 and hit $137bn worldwide.
The Statista survey showed nearly 65% of total SvoD revenue comes from only three countries. The United States, as the largest SVoD market globally, will generate $39.2bn in revenue this year, and continue growing by a CAGR of 8.6% between 2023-2027, resulting in a projected market volume of $54.6bn.
As the second-largest globally, the Chinese market will see an average growth rate of 10.1% in this period, with SvoD revenues rising from $19.4bn to $28.5bn. The United Kingdom follows, with almost $5.5bn in revenue by 2027 and a four-year CAGR of 8.9%.
Over 1.6 billion People to Watch SvoD Videos by 2027
The streaming wars between the media giants Netflix, Apple, Amazon, and Hulu have pushed the media industry’s content cash spending to record highs. Over the past five years, media companies splashed out close to $445bn on video content in five years, all in a race to grow their viewership.
According to the latest Statista forecasts from May, around 1.3 billion people worldwide will watch SvoD videos this year, up from 1.16bn in 2022, with the United Kingdom, China, and the United States as the top three markets. In these developed digital markets, consumers continue switching away from traditional pay-TV consumption in favor of more flexible, affordable, and expansive video formats.
Statista expects the number of users to continue growing in the following years and hit 1.5 billion in 2025. By 2027, this figure is forecasted to grow by another 9% and hit 1.64 billion worldwide. Read the full stats here