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Report: Combined AVOD/SVOD Services to Drive Global Platform Sub Growth
December 5, 2022
Global SVOD subscriptions will increase by 428 million to reach 1.76 billion through 2028, spearheaded by U.S. streaming services, according to new data from Digital TV Research.
The London-based firm estimates Netflix will provide its hybrid ad-supported SVOD subscription option in 85 countries over the next six years, with the ad-supported Disney+ in 91 countries, HBO Max in 55 and Paramount+ in 56. These include pan-regional services in Spanish-speaking Latin America and also in the Arabic-speaking countries.
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These four platforms collectively will have 372 million AVOD/SVOD subscribers by 2028 — or 56% of their total subscriber base.
Given that Disney+ subscribers in most markets are expected to convert automatically to the ad-supported SVOD tier, the platform will have 206 million subs to this option by 2028 — or 88% of its total sub base. At the other end of the scale, 24% of Netflix’s total subs will pay for the hybrid ad-supported SVOD — or 63 million.
“Netflix has a large base of SVOD-only subscribers. Most of these subscribers will remain on these plans, despite the ad-supported tier being considerably cheaper,” analyst Simon Murray said in a statement. “The hybrid tier will appeal most to developing countries where disposable incomes are lower. The hybrid tier will also be attractive to new subscribers that do not have legacy SVOD-only subscriptions.”