New research from analyst outfit and TBI sister company Omdia shows that online video subscription services (SVOD) will reach 1.7bn in 2023, 143 million more than the previous year.
More than a quarter of this growth with come in the US, where it is expected that SVOD subscriptions will rise by 40 million in the coming year, with almost all operators experiencing growth.Part of the reason for this is the widespread introduction of ad-supported tiers, which have reduced monthly costs and thus attracted subscribers who had previously chosen against pure SVOD.
The findings, which were revealed during a session by Omdia’s Maria Rua Aguete at Content Americas, showed that net subscriber additions in 2023 will be 50% of those in 2020, when the pandemic drove growth to unexpected levels.
“2020 saw SVOD grow at one of the fastest rates on record,” Rua Aguete told TBI. “In fact, in absolute terms, 2020 added to the VOD industry more subscribers than at any other point in history and most likely, at any point to come.
“While 2020 was a year for the records, 2023 will be a year of industry-wide cooling despite the myriad services coming from big Hollywood players – but the launch of advertising tiers for many of these players means that 2023 will still be a year of growth.”
Streamers will also benefit from content pipelines that are largely back in place following disruption through the pandemic, as well as theatrical pushes bolstering subs.
In Latin America, Omdia predicts that net SVOD subscriber additions will reach 19 million, which is more than 60% of what was achieved in 2020.
This will be driven by Netflix, which is set to attract 2.3 million more subscribers overall in 2023, with Brazil and Mexico leading the charge for the gobal streamer.