Much has been discussed about SVOD’s impact on the traditional pay-TV sector. Several observers declared that SVOD would kill pay-TV.
However, sentiment has now shifted to an understanding that the two can work together and that they are not mutually exclusive.
SVOD subscriptions are dwarfed by pay-TV. By end-2016, Digital TV Research estimates that the 248 million SVOD subscriptions represented 26% of the pay-TV total (938 million). However, the 2016 figure is much, much higher than the 4% recorded in 2010 when there were only 28 million SVOD subscribers.
SVOD will continue to gain share – with 40% of the pay-TV total by 2021. SVOD subscriptions will climb by 73% between 2016 and 2021 compared with only 14% for pay TV.
The differing fortunes between pay-TV and SVOD revenues are even more evident. SVOD revenues grew tenfold between 2010 and 2016, with pay-TV up by only 20%. SVOD revenues will climb by 84% between 2016 and 2021 whereas pay-TV revenues will be flat. However, SVOD revenues will only represent 16% of pay-TV revenues by 2021, although this is up from 8% in 2016 and 1% in 2010.
More research and insight in the reports of Digital TV Research.
