Worldwide Subscription Video-On-Demand To Grow Nearly 30% In Revenue In 2014

Spending on subscription video-on-demand services will continue to climb at double-digit percentage gains in the coming years.

Information research company Gartner expects consumer spending on SVOD services to grow 28.1% in 2014 and 18.2% in 2015. Gartner says spending on SVOD services in North America is on pace to improve 28.5% in 2014 and 18.6% in Western Europe. Emerging territories will see a 53% growth rate in 2014.

Currently, Gartner estimates that worldwide, TV homes spend anywhere between $6 and almost $10 per month on average per subscription.

But “technology enthusiast” households -- early adopters -- spend even more. In the U.S. these households spend on average $15 a month on SVOD services, and in Germany they spend $17.

Fernando Elizalde, principal research analyst at Gartner, states on the company site that SVOD will not displace pay-TV services as a whole. “It is, and will be, complementary to traditional pay-TV services such as cable TV, satellite TV or IPTV.”

Right now, pay TV remains the biggest segment of the overall consumer video services market, accounting for 96.3% of total spending in 2014, growing to 94.2% by 2018.



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