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Major Global Markets Can Accommodate 3 Billion More SVOD Users, Study Says

Fern Siegel

There is room for 3 billion additional streaming subscriptions across the globe’s largest media markets, according to researcher Ampere Analysis.

As more users stack their SVOD subscriptions, Ampere studied the top 20 TV subscription markets worldwide. It concluded the highest number of services, roughly eight, was in the U.S. Europe weighted in with two to five per household.

“Even as we begin to see growth in SVOD services in emerging markets, our analysis shows that opportunity for expansion is actually still a very solid proposition in established territories,” states Daniel Gadher, research manager at Ampere Analysis. “As cord-cutting continues, the U.S. stacking ceiling is theoretically as high as eight services per average household, while in developing markets like Brazil it is far lower – at just 1.5.”

The study also found Americans spend about $900/year on TV services, a number that has remained fairly steady. The SVOD draw, propelled by new arrivals, has fueled added interest.

Disney+ has scored wild success since its November 2019 debut, thanks in part to “The Mandalorian,” which quickly wracked up subscription numbers. Earlier this month, Disney announced the service had reached 60.5 million subscribers as of August 3, having reached 57.5 million subscribers at the end of the third quarter in June 2020. Hulu was at 35.5 million and ESPN+ was at 8.5 million.

Plus, the just-announced Apple TV+ bundle should usher in a boost, too. Apple TV+ subscribers that pay $4.99/month can now add on CBS All Access Ad-Free ($9.99) and Showtime ($11.99) for just $9.99 a month, after a seven-day free trial. For those already getting Apple TV+, this is a sizable discount on services.

Today, the company announced it has revamped its distribution deal with Verizon so that users on select Mix and Match Unlimited wireless plans, get Disney+, Hulu (with ads), and ESPN+ at no extra charge, beginning Aug. 20. The offer is slated to expire on Feb. 28, 2021.

Markets outside the U.S. will continue to see an uptick in TV spending. Ampere forecasts an increase of SVOD services by 20 to 30 percent over the next five years.

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