Global SVOD Revenues to Reach $127 Billion by 2029
Global SVOD Revenues to Reach $127 Billion by 2029
Now that the Hollywood writers’ strike appears to be ending (though the actors’ guild is still striking for a new contract), executives in Hollywood can get back to worrying about their bottom lines. Warner Bros. Discovery estimated recently that it would have to shave $300 to $500 million off its profit projections for 2023 because of the strikes, but a new survey suggests that long-term financial consequences due to work stoppages could be minimal.
That survey comes from the British-based firm Digital TV Research. It found that revenues from all subscription video-on-demand (SVOD) services across the globe will reach $127 billion by 2029 and that most of the revenue will come from American-based streaming platforms like Netflix.
In fact, Netflix will lead all global streaming platforms by accounting for $33.5 billion of that total revenue itself. The next three biggest services combined (Disney+, Max, and Paramount+) aren’t expected to generate that revenue, which means analysts are bullish on Netflix’s continuing ability to stay ahead of its competitors in the long-term. Currently, Netflix is the only streaming platform that posts a regular profit, while other streamers lose millions of dollars every quarter.
Graph courtesy of Digital TV Research
The forecast means that Digital TV Research expects SVOD revenues to jump $20 billion in the next six years; currently, global streaming platforms generate $107 billion every year. A large part of that big revenue increase is due to the fact that all streaming services are prioritizing profit margins, and the introduction of ad-supported tiers industry-wide means streaming will see a big influx of advertising dollars in the years to come.
Geographically speaking, the revenue increases will come from all over the globe. The United States is expected to contribute $2 billion more in streaming revenue by 2029, and $1 billion each will come from Brazil, Germany, Japan, and South Korea.
The fact that Germany alone is forecast to increase its SVOD revenues by $1 billion in the next half-decade reinforces data recently released by Ampere Analysis which shows that Western Europe is set to overtake the U.S. as the second-largest streaming market in the world by 2024. The population of Germany is less than a third as large as that of the U.S., so if it can generate $1 billion more in streaming revenue itself by 2029, combining its numbers with the rest of Europe would give it a big edge over the American market.
A study from earlier this year found that streaming revenues were due to surpass those of cable by 2027. Digital TV Research’s data confirms that the streaming industry is heading in the right direction and that it will be an earnings powerhouse in the years to come, though it will be a while before services like Disney+ catch up to Netflix.
Disney+
Disney+ is a video streaming service with over 13,000 series and films from Disney, Pixar, Marvel, Star Wars, National Geographic, The Muppets, and more. It is available in 61 countries and 21 languages. It is notable for its popular original series like “The Mandalorian,” “Ms. Marvel,” “Loki,” “Obi-Wan Kenobi,” and “Andor.”