New video content investment will support OTT SVOD growth in Europe, reaching 75 million subscriptions by 2023, says GlobalData.
The European subscription video on demand (SVOD) market will expand at a 5.6% compound annual growth rate (CAGR) between 2019 and 2023, reaching 75 million subscriptions at the end of the forecast period, according to GlobalData.
The European SVOD market is highly competitive, with an increasing number of global and local players competing for market share. Securing the right content is a key element for companies looking to succeed in the over-the-top (OTT) video space.
Sergej Gavrilov, Telecoms Market Data and Intelligence Analyst at GlobalData, commented: “A number of SVOD service providers such as Netflix and Amazon have been increasing their content production budgets over the last several years to attract customers with exclusive and original content tailored for European audiences. For example, Netflix is estimated to spend close to $1bn in 2019 on content production in Europe.”
As new EU regulation on SVOD content quotas come into play, which demand that at least 30% of a VOD platform’s catalogue is European content, large production companies such as Disney and HBO are increasingly creating their own content for their proprietary platforms.