The European subscription video-on-demand (SVOD) market is due to reach revenues of US$6.8 billion in 2022, up from US$3.9 billion in 2017, according to Kagan research.
The S&P Global Market Intelligence research group said that Netflix’s localised presence throughout Europe was one of the “main factors” contributing to this growth.
Other cited factors were the expansion of Amazon Prime Video as a stand-alone service, the debut of international OTT services like Naspers’ Showmax, and the strengthening of offerings from local media providers – such as Sky’s Now TV and ProSiebenSat.1 Media’s Maxdome.
This week, YouTube CEO Susan Wojcicki suggested Google-owned SVOD service YouTube Red would soon launch in as many as 100 territories, though how many will be in Europe is currently unclear.
According to Kagan estimates, total paid subscriptions to online video services across 14 European markets will grow from 39.3 million in 2017 to 60.8 million in 2022, a compound annual growth rate of 9.1%.
SVOD services were found to be especially popular in the Nordics, with Denmark, Norway and Sweden ranking as the countries with the highest penetration rates – ranging from 76.2% to 86.1% in 2017.
Kagan said this can be attributed to the countries’ high percentage of English-speakers as well as disposable incomes higher than the European average.
The UK was found to have Europe’s highest number of SVOD subscriptions, more than double those in Germany in 2017. The report said it expects this to continue over the next five years.