Subscription video-on-demand (SVoD) services are foreseen as the dominant mode of entertainment in the near future.
This is the trend mirrored by the “TV Forecasts,” a new report released by the London-based analytics group, Digital TV Research.
Within the 2017 to 2023 forecast period, the study indicated that the traditional pay-TV subscriptions would merely gain 94 million subscribers.
These figures are expected to be dwarfed by subscriptions for SVoD services that are predicted to be more than double.
From 366 million subscriptions in 2017, SVoD subscribers will swell by 411 million to 777 million by the end of the forecast period.
Moreover, with the unstoppable rise in the population of cord cutters, subscriptions for traditional pay-TV services in the United States will nosedive by 10 million. The statistical figures expected will be 80 million.
Meanwhile, from 132 million, the SVoD total subscriptions in the country will increase to 208 million with multiple subscriptions.
As for the subscription revenues, “TV Forecasts” predicted that the cord-cutting development would spill over the rest of the world.
The research indicated that, as people move away from traditional pay-TV offerings, the revenues for this service will decrease by $18.5 billion, dropping to $183 billion.
On the other hand, a rosy outlook for the SVoD sector is foreseen as revenues are anticipated to expand by $43.7 billion, crossing the $69-billion mark.
In 2023, the revenue share of SVoD will accumulate to 27 percent, growth from 11 percent at the start of the forecast period.
Even if subscription revenues for both pay-TV and SVoD services are expected to drop from $108 billion last year to $105 billion by the end of the forecast period, the United States is seen to maintain its status as the leader, subscription revenue-wise.
Revenues for pay-TV subscriptions in the country are predicted to hurt with a $20-billion decline. The additions for SVoD subscriptions are also viewed to be unable to compensate for the deficit.
The 96-page, comprehensive “TV Forecasts,” research includes 112 charts. Digital TV Research noted that the statistical figures represent gross subscriptions.
One household can subscribe to more than one service. Â For instance, it can subscribe to mainstream SVoD provider, Netflix, and pay for a satellite TV service as well.
Moreover, the study pointed out that some households pay for two or more SVoD services. “TV Forecasts” offers predictions for SVoD and pay-TV subscriptions from 138 participant territories.