The U.S. accounts for nearly half of all subscription streaming video service revenues around the globe, according to Strategy Analytics.
The research firm said that consumer spending on SVOD services globally was $53.34 billion in 2019. The U.S. accounted for 43%, followed by China (17%), Germany (4%), and the United Kingdom (4%). Overall, the top ten countries account for 81% of consumer spend on SVOD services.
Strategy Analytics predicts that by 2025, global consumer spending on SVOD services will grow to $102.86 billion, and that the U.S. will account for 44%, followed by China (15%), and Germany (5%).
“Whether it is pay TV, video rental and sell-thru, or subscription VOD, U.S. consumers have historically shown a willingness to spend on these products and services at a far greater rate than those in the vast majority of other countries,” said Michael Goodman, director of TV and media strategies at Strategy Analytics, in a statement. “There are many local and regional SVOD services around the world, these services must be realistic about the ultimate potential of SVOD revenues and not base their models on U.S. levels of demand.”
The firm also said that U.S. TV households are more likely to subscribe to SVOD services than those in other countries. In 2019, 74% of U.S. TV households subscribed to one or more SVOD services, compared to the global average of 32%. On average, U.S. SVOD households subscribed to 2.45 SVOD services in 2019, and by 2025 the firm expects the figure will grow to 3.21. In comparison, SVOD households globally subscribed to 1.54 SVOD services in 2019, and are expected to subscribe to an average of 1.82 by 2025.
Strategy Analytics also said SVOD services tend to be more expensive in the U.S than in other countries. Globally, average spending per SVOD service in 2019 was $6.24, but the U.S. the average was 63% higher at $10.22 per SVOD service. Given that each SVOD household in the U.S. subscribes to multiple services, they spent an average of $22.52 per month on SVOD services, compared to $9.26 globally