Global SVOD revenues will increase by $116.6 billion by 2031, a growth rate of 13.3% per year over the next eight years, according to a new report from MIDiA Research. Cumulative revenue is expected to rise from $109.6 billion in 2024 to $226.2 billion in 2031.
MIDiA says the majority of this revenue growth will come from older consumers (so-called “silver streamers” 55+) reluctant to cancel subscriptions despite price increase.
Despite this conclusion, MIDiA’s report "2024-2031 Global Subscription Video Forecasts" also recommends SVOD providers use ad-supported models to engage and retain younger viewers, “creating a pipeline for future subscription upgrades as these viewers' financial situations improve.”
The report also concluded that the SVOD market will experience revenue growth that significantly outpaces the increase in subscriber accounts, indicating a shift towards a more mature and sustainable market model over the next eight years. In addition, cumulative revenue growth over the next eight years will be double that of unique account growth, reflecting the increasing efficiency in monetization within the sector.
"Younger entertainment consumers are facing unprecedented pressure on their already low spending power. Millennials and Gen Z have also been educated by social media platforms to expect a range of free content supported by advertising or brand partnerships," said Ben Woods, video analyst at MIDiA Research. "SVOD services risk losing engagement to the social video platforms if they fail to create offers that truly cater to younger viewers. Widening the funnel even further through free-ad supported streaming TV channels that do not require a subscription would give SVOD services a better chance of turning these cash-poor consumers into tomorrow's subscribers."
