Netflix will have its largest growth year to date in 2018, adding around 28 million subscribers over the year, according to predictions from Digital TV Research.
The study predicts that Netflix will increase its SVOD user numbers by 82% from 111 million in 2017 to around 201 million in 2023.
“These forecasts are a lot higher than the last edition of this report. Similar to many other analysts, we underestimated the fast take-up in international markets,” said Digital TV Research principal analyst, Simon Murray.
According to the report, as Netflix continues to grow its subscriber numbers its customer base will be less concentrated in its largest markets.
North America and Western Europe are expected to supply a combined 62% of Netflix’s total subscriber base by 2023 – down from 76% in 2017.
Asia Pacific meanwhile is expected to quadruple its 2017 subscriber figure by 2023, accounting for 28 million subs and 14% of Netflix’s subscriber number by this date.
“The top five countries will supply 53% of Netflix’s subs by 2023; down from 69% in 2017,” according to the report. “Although the number of international subs overtook US ones in 2017, the US will still contribute 44% of subscribers by 2023 – and will add 16 million subs between 2017 and 2023.”
Netflix’s streaming subscription revenues are tipped to climb by 155% from US$11.3 billion in 2017 to US$28.8 billion in 2023. The top five countries are expected to generate revenues of $16 billion in 2023 – or 56% of Netflix’s global subscription revenues.
According to the study, Netflix’s largest markets by subscribers in 2023 will be the US (69.1 million), the UK (12.1 million), Brazil (9.1 million), Canada (8.0 million), and Germany (7.3 million)