Record Growth for SVOD Subs in Q3

In the third quarter of this year, the number of global SVOD subscribers rose by 217.6 million, according to Strategy Analytics, the highest increase ever, topping the previous record of 211.7 million in Q4 2018.

Strategy Analytics’ TV and Media Strategies research demonstrates the impact of COVID-19 on the SVOD market, with subs reaching 769.8 million in the period, up from 552.1 million a year ago, based on analysis of 21 leading global platforms.

“Until early 2020 it looked like the SVOD growth curve was heading towards a plateau, but the annual growth rate has actually been accelerating during the past 12 months,” said Michael Goodman, director of TV and media strategies at Strategy Analytics. “Netflix of course remains the clear leader, but its share of subscriptions has been falling steadily as new entrants arrive. Disney’s rapid growth has helped it reach the number two position in subscriptions, and with its various D2C services it has already reached an annual revenue run rate of $5.8 billion.”

“This evidence confirms that the transformation of TV is well underway,” added David Mercer, VP and principal analyst. “SVOD services are playing a key role in changing the way people watch TV, and we expect hundreds of millions of homes worldwide to move away from traditional broadcast and pay TV over the coming decade.”