One-Fifth of European TV Homes to Become SVOD Subscribers by 2020

LONDON: The number of European homes subscribing to SVOD packages is expected to reach 59.41 million in 2020, representing a 20.7 percent share, according to a new report from Digital TV Research.

That figure was 1.78 million in 2010 (0.6 percent) and is forecast to reach 17.99 million (6.4 percent) by the end of this year. The report, European Online TV & Video, expects that 6.8 percent of Eastern European TV households will subscribe to an SVOD package by 2020, compared to 29.7 percent in Western Europe.

Revenues from online TV and video subscriptions are forecast to soar from $116 million in 2010 to $1.633 billion in 2014 to $5.5 billion in 2020. The U.K. is expected to remain the leader in the SVOD revenue market, though Germany will be close behind by 2020. The U.K.'s share of regional revenues is predicted to drop from 30 percent in 2010 to 20 percent in 2020. Italy will increase from $66 million in 2010 to $1.24 billion by 2020. Russia will gain from $20 million in 2010 to $847 million by 2020.

In total, online TV and video ad revenues are expected to reach $2.305 billion in 2014, up from the $663 million reported in 2010. This expenditure growth is forecast to continue at a rapid rate, reaching a European total of $5.117 billion by 2020.