SVoD is driving force behind pay-on-demand TV market, with lots of room to grow - study

Thursday 8 March 2018 | 12:43 CET | News
SVoD was the driving force behind pay on-demand market growth, making up 66 percent of total service revenue in 2016, from 11 percent in 2011, according to a report by the European Audiovisual Observatory, part of the Council of Europe in Strasbourg, and financed by EC’s DG Connect. In general, SVoD service revenue in Europe grew 128 percent per year between 2011 and 2016. 

Though SVoD is still a small market, it is growing fast, with the number of subscribers reaching an estimated 38.7 million in EU 27 and 43.5 million in greater Europe, up by an annual growth rate of 55.5 percent and 54.2 percent, respectively, between 2011 and 2016. 

And there is still much room for growth, the study fround. SVoD made up only 18 percent of all pay-service subscriptions (linear pay-TV+SVOD) in 2016, though that is a jump from 2011’s 1 percent. In terms of revenue, SVOD contributed 6.8 percent to the total revenues for all pay-services, against 0.2 percent in 2011. 

Specifically, total revenues for SVOD services was estimated at EUR 2.5 billion for EU 27 and EUR 2.8 billion for greater Europe. The average annual growth rate of revenue between 2011 and 2016 went to 128 percent and 106 percent, respectively. 

The top five countries in terms of SVOD revenue were the UK, Germany, Sweden, Denmark and Norway. Together they accounted for 69% of total SVOD revenue in Europe. The average penetration of SVoD among TV households was 17 percent for EU 27 and 14 percent for greater Europe. 

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