Global SVOD revenue to grow by nearly $117bn over the next 8 years

Global SVOD revenue growth will average 13.3% per year over the next eight years, adding $116.6 billion in net new revenue, according to market intelligence firm MIDiA Research.

In the company’s latest report, 2024-2031 Global Subscription Video Forecasts, it revealed cumulative revenue growth will rise from $109.6 billion in 2024 to $226.2 billion in 2031.

The report provides an in-depth analysis of the SVOD market, forecasting key trends and growth patterns over the next eight years.

According to MIDiA Research, the majority of this revenue growth will reflect price increases delivered to price inelastic older consumers, driven by silver streamer (consumers aged 55+) adoption.

The report also emphasises that the key to the SVOD market’s future success lies in engaging and retaining younger consumers through ad-supported models, creating a pipeline for future subscription upgrades as these viewers’ financial situations improve.

The company’s findings showed that the SVOD market will experience revenue growth that significantly outpaces the increase in subscriber accounts, indicating a shift towards a more mature and sustainable market model.

Total net revenue growth over the forecast period will be double that of unique account growth, reflecting the increasing efficiency in monetisation within the sector. In addition, engaging younger, cconsumers will be critical for future subscription growth, says MIDiA Research.

Tim Mulligan, lead video analyst and co-founder of MIDiA Research, said: “Perhaps the biggest finding from this report is just how well the unsung heroes of the streaming TV landscape are forecast to perform, with Apple, Comcast, and Paramount all outperforming on a revenue basis. Troubled Paramount is forecast to beat the industry average revenue growth rate by nearly two times. Paramount has three distinct monetisation advantages — global scale, highly engaged users, and a renowned IP bank — all of which make the distribution agnostic but marketing keen Paramount able to position Paramount+ as a must-have additional video service. The intense M&A activity around Paramount can now be seen in a different light as a battle to secure premium IP and engagement tools in an industry heading towards subscriber retention.”

Ben Woods, video analyst at MIDiA Research, said: “With the focus sharpening on profitability, TV streaming services were right to broaden their revenue mix with ad-supported tiers that helped ease the pressure on subscriber growth. Yet, simply widening the funnel in this way may not be enough to engage the entertainment spenders of the future.

Woods added: “Younger entertainment consumers are facing unprecedented pressure on their already low spending power. Millennials and Gen Z have also been educated by social media platforms to expect a range of free content supported by advertising or brand partnerships. SVOD services risk losing engagement to the social video platforms if they fail to create offers that truly cater to younger viewers. Widening the funnel even further through free-ad supported streaming TV channels that do not require a subscription would give SVOD services a better chance of turning these cash-poor consumers into tomorrow’s subscribers.”

Read Next