In a digital era where streaming services have become the go-to entertainment choice for millions, the growth of subscription-based streaming …
In a digital era where streaming services have become the go-to entertainment choice for millions, the growth of subscription-based streaming revenues continues to surge. According to data presented by OnlyAccounts.io [source], global subscription-based streaming revenues are projected to reach a staggering $95.3 billion in 2023, representing an 18% increase compared to the previous year. This exponential growth is set to continue, with forecasts predicting a remarkable 73% surge over the next four years, resulting in a total of $137 billion by 2027.
The Soaring Rise of Subscription-Based Streaming Services:
In just a span of five years, the number of people utilizing subscription-based streaming services has nearly doubled. In 2017, there were 610 million subscribers, and this figure skyrocketed to 1.16 billion in the past year. This surge in subscriber numbers reflects the evolving preferences of consumers who now prioritize the convenience, flexibility, and abundance of content that streaming platforms offer.
Shifting Revenue Landscape:
As subscription-based streaming gains momentum, revenue generated from this model has experienced significant growth. Statista Market Insights reveals that global revenue from subscription-based streaming has nearly tripled since 2017, surpassing $80 billion in 2022. Notably, during this period, physical format sales declined by almost 30%, while digital pay-per-view and paid downloads witnessed slower growth compared to streaming.
The Future of Streaming Revenues:
With the expanding availability of streaming services, Statista predicts further revenue growth in the coming years. Projections suggest a 9.5% average annual growth rate for global streaming revenues between 2023 and 2027, culminating in a worldwide total of $137 billion.
Regional Insights:
The dominance of subscription-based streaming revenues is evident in specific regions. Statista’s survey highlights that nearly 65% of total subscription video on demand (SVOD) revenue originates from just three countries. The United States, as the largest SVOD market globally, is expected to generate $39.2 billion in revenue this year alone, with a projected compound annual growth rate (CAGR) of 8.6% from 2023 to 2027, reaching $54.6 billion in market volume. China, the second-largest market, is anticipated to experience a 10.1% average growth rate during this period, leading to SVOD revenues rising from $19.4 billion to $28.5 billion. The United Kingdom follows closely, with estimated revenue of approximately $5.5 billion by 2027 and a four-year CAGR of 8.9%.
The Intensifying Streaming Wars:
The rise of media giants such as Netflix, Apple, Amazon, and Hulu has fueled what is commonly known as the “streaming wars.” These companies have significantly increased their spending on video content, splashing out approximately $445 billion over the past five years. The competition among these industry giants aims to capture a larger audience and secure a prominent position in the streaming market.
Expanding Viewership:
According to Statista’s latest forecasts from May, around 1.3 billion people worldwide are expected to watch SVOD videos in 2023, up from 1.16 billion in 2022. The United Kingdom, China, and the United States emerge as the top three markets for SVOD consumption. As consumers in these digitally developed markets continue to transition away from traditional pay-TV, they increasingly embrace the flexibility, affordability, and expansive content offerings provided by streaming platforms.
Future Growth Prospects:
Statista predicts a continuous rise in the number of streaming service users, forecasting a surge to 1.5 billion in 2025. By 2027, this figure is projected to grow by another 9% and reach 1.64 billion worldwide.
Source: Broadband TV News
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