Boston: The numbers of households worldwide that pay for streaming video on demand services (SVOD) such as Netflix, Amazon Prime Video and Hotstar has now broken through the 250 million mark, according to the latest research from Strategy Analytics’ TV and Media Strategies service.
The report, Home Video and OTT Video Forecast – Global, predicts that the number of homes paying for subscriptions to streaming video services will reach nearly 300 million by the end of 2018 and more than 450 million by 2022.
While US topped the chart with 59%, India has only 3% of people paying for the streaming Video which exposes that the large quantity of the subscribers are willing to consume digital content or streaming videos for free instead of Premium Services that comes at a cost.
Among Asian countries South Koread stood on top with 29% followed by Japan with 29%, while China has 12% of the people paying for Streaming Videos.
Major services analysedin this research include Netflix, Amazon Prime Video, Hotstar, IVI.ru, Hulu, Viu and iFlix and few pay-TV-like services such as NowTV and DirecTV Now were not included.
Other key findings from the research include:
- Average monthly household spending on streaming video services increased by 5.0% in 2017 to $9.46
- The total number of streaming video subscriptions reached 345 million by the end of 2017
- Households paying for streaming video services used on average 1.39 services
- The US has the highest penetration of streaming video services, with 59% of households using at least one service at the end of 2017
Percentage of Households Paying for Streaming Video Services, Dec 2017:
Source: Strategy Analytics’ Media Strategies Group, Feb 2018
“Streaming video is rapidly becoming a normal part of people’s entertainment options,” says Michael Goodman, Director, TV & Media Strategies. “Usage is already at around half of households in the most mature markets and is likely to reach those levels in many other countries in the near future.
“Clearly market leaders like Netflix and Amazon will benefit from this trend, but there are also major opportunities for media companies which currently focus on more traditional pay TV and content development business models.”