Report: Mobile SVOD subscriptions to claim 40% of SVOD market by 2025


Less than half of global SVOD subscriptions will be delivered across fixed broadband connections by 2025 as mobile SVOD subscriptions – especially in emerging markets – gains an increasing share of the subscription video on-demand market.

A new report estimates global SVOD subscriptions will top 1.16 billion by 2025, up from 642 million last year, and increase of more than 80% over the next five years. Just 45% of those subscriptions – about 526 million – will be delivered via fixed broadband, said Direct TV Research, with another 176 million, about 15% of the market delivered via partnerships with pay TV operators

Mobile SVOD subscriptions soar in emerging markets

The increase of mobile SVOD subscriptions will be especially notable in the emerging markets of Asia, Latin America and Africa, where fixed broadband penetration generally is low.

For example, while the fixed broadband market across the entire Asian region continues to experience growth, penetration across the region remains under 20%. In Africa, that number is under 1%, In Latin America, meanwhile, operators will continue to focus on consumer growth in developed markets like Brazil, Mexico and Argentina.

With fixed broadband penetration below global norms in many developing markets, and 4G and 5G wireless deployments gaining speed, smartphone connections are growing in importance. DTVR says that by 2025, 291 million SVOD subscriptions – or 25% of the global total – will come direct to the SVOD platforms via mobile apps.

In addition, by 2025:

  • Another 170 million – 15% of the global total – will come indirectly via mobile operators;
  • Mobile SVOD subscriptions will make up at least 40% of the market; and
  • 30% of global SVOD subscriptions – or 346 million – will be indirect either via a partnership with a mobile operator or through a distribution deal with a pay TV operator.

The bottom line

Even without the boost in subscriber numbers that have resulted from the COVID-19 pandemic, the SVOD sector was slated to see rapid growth as more consumers build their own micro- and mini-bundles of content and, in developed markets, eschew pay TV for streaming services. The SVOD portion of the OTT market alone – assuming live sports return successfully – will number 1.16 billion by 2025, an 80% increase over 2019. If COVID-19 further delays the resumption of sports, that SVOD number will increase.

Increasingly, and at a rapid pace, mobile broadband penetration is growing, not only in emerging market, but also in developed markets like the United States. As of 2017, there were 132.9 mobile broadband subscriptions per 100 inhabitants, up from just 54 per 100 in 2010.

But mobile-only internet users increased an estimated 47% between 2015 and 2019, to 47.2 million from 32.1 million. By next year, the number of dramatically in the US. In

Brightcove’s Q1 2020 Global Video Index found that video view on smartphones continued to grow despite COVID-19 stay-at-home edicts. Year-over-year, smartphones view were up 47% across the globe.

Content owners who partner with mobile carriers potentially have the advantage of being delivered directly to an audience used to consuming content on smartphones (although US mobile-first startup Quibi may put a dent in that advantage). Operators also make their services stickier by offering SVOD services and SVOD services can take advantage of shared back office efficiencies.

As DTVR points out, Netflix has made partnerships with wireless operators a big part of its strategy, having deals in place with 111 of them. Amazon Prime, too, is cutting deals to go wireless, signing deals with more than 50 wireless carriers.

Stay tuned and stay well.

Jim O’Neill is Principal Analyst at Brightcove. You can follow him on Twitter @JimONeillMedia and on LinkedIn