“Silver Streamers” to Help Drive SVOD Revenue Gains


Global SVOD revenues are projected to increase by an average of 13.3 percent per year over the next eight years, according to a new report from MIDiA Research, partly driven by consumers 55-plus, but engaging with younger audiences via ad-supported tiers is key for the sector’s continued growth.

MIDiA forecasts $116.6 billion in net new SVOD revenue over the next eight years. Cumulative revenue growth will rise from $109.6 billion in 2024 to $226.2 billion in 2031. MIDia says this growth reflects rate increases among price-inelastic older consumers, driven by adoption among consumers 55 and up.

2024-2031 Global Subscription Video Forecasts also stresses the importance of engaging and retaining younger consumers through ad-supported models. As their financial positions improve, they can potentially be upgraded to higher-priced tiers.

Revenue growth will outpace the gains in subscriber numbers, the report says, reflecting a shift towards a more mature and sustainable market model.

Tim Mulligan, lead video analyst and co-founder of MIDiA Research, said: “Perhaps the biggest finding from this report is just how well the unsung heroes of the streaming TV landscape are forecast to perform, with Apple, Comcast and Paramount all outperforming on a revenue basis. Troubled Paramount is forecast to beat the industry average revenue growth rate by nearly two times. Paramount has three distinct monetization advantages—global scale, highly engaged users and a renowned IP bank—all of which make the distribution-agnostic but marketing-keen Paramount able to position Paramount+ as a must-have additional video service. The intense M&A activity around Paramount can now be seen in a different light as a battle to secure premium IP and engagement tools in an industry heading towards subscriber retention.”

Ben Woods, video analyst at MIDiA Research, added: “With the focus sharpening on profitability, TV streaming services were right to broaden their revenue mix with ad-supported tiers that helped ease the pressure on subscriber growth. Yet, simply widening the funnel in this way may not be enough to engage the entertainment spenders of the future. 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. 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.”

Mark Qi, forecasting and modeling analyst for MIDiA Research, noted: “As streaming video consumer penetration reaches its saturation point in developed markets, there are companies which will be able to leverage synergy in their wider customer base to bolster subscriptions numbers. Apple one and cable bundles such as Xfinity and Sky will lead to stronger than average subscriber growth for Apple and Comcast, which in turn bolsters revenue from high ARPU markets.”