European SVOD revenue to nearly triple by 2023; subs to 98.9 million

European SVOD revenue will nearly triple to $12.4 billion by 2023, a new report says. That easily bypasses the combined revenues of ad-based online videos (AVOD), download-to-own video (DTO) and online video rentals.

Currently SVOD revenue is $4.4 billion. By  contrast, DTO is at $1.2 billion, rental is at $0.9 billion and AVOD is at $3.3 billion. By 2023, AVOD is expected to hit $6.9 billion, DTO $2.2 billion and rentals $1.4 billion. The OTT revenue total for 2017 was $9.8 billion.

As of 2016, SVOD revenue is the largest generator in the region, overtaking AVOD. Overall, it  will own 54% of OTT revenues in 2023, compared to 45% in 2017.

The report, from Digital TV Research, forecast 69.3% of Western European households (HH) will subscribe to at least one SVOD service by 2023. That’s about 98.9 million subscribers, up from 38% and 50.3 million subs in 2017.

With more than half of the region’s total SVOD subscribers by 2023 (49.8 million), Netflix will remain the largest SVOD service, with Amazon Prime Video at 22 million.

The bottom line

Like everywhere else, European SVOD revenue growth is all about subscriber growth – and that’s all about available content.

DTVR says 2018 will see subscriber numbers grow by 15 million, with 2019 seeing an additional 11 million new gross subscribers.

The United Kingdom, which already generates the highest SVOD revenues in Europe, will continue to have the lion’s share through 2023, generating as much as second-placed Germany and third-placed France combined by 2023.

Stay tuned.

Jim O’Neill is Editor of Videomind and Principal Analyst at Brightcove. You can follow him on Twitter @JimONeillMedia and on LinkedIn