Despite the tumultuous last year, streaming services are still bringing in a ton of money. In 2022, global subscription video-on-demand (SVOD) revenue reached $105.7 billion, a 24.6% increase from the previous year, but according to a new study from MIDiA Research, the revenue numbers for these companies will only grow more staggering in the future, as the research firm predicts that streamers will reach $321.9 billion by 2030.
To reach this hypothetical total, SVOD’s revenue would need to increase steadily by 24.4% every year. That may sound like a lofty goal, but given the rise last year, it seems possible. While it is unlikely that the industry will ever repeat the pandemic-level growth of 2020 — when streaming saw a 46.6% bump — due to a number of changes, increasing revenue by roughly 25% is ambitious, but within the realm of possibility.
MIDiA’s expectation of such significant growth isn’t an outlier among those doing this sort of research. Many studies project both decent growth in the amount of money made in streaming, as well as a sharp increase in the number of SVOD subscriptions around the world, with markets outside of North America leading the way. It’s these changing regional trends that have a great impact on the projections.
For instance, North America is currently responsible for 38.6% of global streaming revenue, but only 18.2% of global subscribers. By 2030, both of these numbers are projected to trend downwards, with North America only making up 32.2% of global revenue and 13.2% of subscribers. This is reflective of the impending increase in Latin America’s share of the market, but Latin America isn’t the only region of the world that’s bound to continue to expand its share of the pie.
The Asia-Pacific region already dominates in the number of subscribers, with 56.2% of the global total this year. However, its share of global revenue, which sits at 32.2% in 2023, still lags behind North America. This is going to change by 2030, according to the study, with subscribers rising to 58.8% and revenue to 34.5%.
“After eight years of steady expansion, global subscriber numbers will have neared their peak by 2030,” MIDiA video analyst Ben Woods said. “That leaves Western SVOD services with a narrowing window of opportunity. With competition intensifying from indigenous services within Asia Pacific and emerging markets, gaining those remaining subscribers will be tough.”
By 2030, the streaming landscape will have completely changed, and Western companies and consumers will no longer dominate the marketplace. But knowing what’s coming, we’ll see if those companies have any tricks up their sleeves to remain relevant in an industry that is globalizing rapidly.