Netflix and Amazon Prime Video may face a number of new competitors with specialized services, but these providers’ hold on the North America SVOD market isn’t going to let up anytime soon.
Most of the dual SVOD subscriptions, according to Digital TV Research, will be for these two platforms. Netflix will have 59 million subscribers in the U.S. by 2022, up by 11 million or 23% on end-2016. Likewise, in Canada, Netflix will have 7 million in Canada, up by 26% in 2016.
However, these companies have slipped slightly. The research firm said that Netflix and Amazon will account for 72.5% of the North America’s SVOD subscribers by 2022, down from 78.6% in 2017.
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With over 112 million subscribers for film and TV episode platforms, North America’s SVOD market has earned its status as the most mature market in the world.
The SVOD market, according to Digital TV Research’s latest report, is expected to add 59 million more subscribers by 2022 for a total of 171 million.
Simon Murray, a principal analyst at Digital TV Research, said that the majority of households will subscribe to various SVOD services.
“It is important to stress that these figures are gross; many homes take more than one SVOD platform, especially in the U.S.,” Murray said in a release. “That explains why we forecast 132% SVOD penetration of US TV households by 2022.”
According to the research firm, 70.3% of US TV households (85 million) will subscribe to at least one SVOD platform by 2022. The average SVOD household will pay for 1.88 SVOD platforms, up from 60.3% of TV households (70 million) TV households subscribing to at least one SVOD platform by the end of 2016.
Since the average SVOD subscriber paid for 1.5 SVOD platforms at the end of last year, Digital TV Research forecasts that “penetration growth of TV households will slow considerably, but SVOD homes will buy more services.”