Forecast: African SVoD revenues to grow sixfold
January 13, 2020
African SVoD revenues will reach $1.05 billion (€0.94bn) by 2025; six times the 2019 total of $183 million. Digital TV Research forecasts 9.72 million SVoD subscriptions by 2025, up from 2.68 million at end-2019. South Africa (3.24 million by 2025) will remain the subscription leader, with Nigeria (2.14 million) in second place.
Simon Murray, Principal Analyst at Digital TV Research, said: “Over the last year, there has been a shift from cheap, local platforms towards the multinational players. This means higher revenues as their prices are higher than local players, but it also keeps subscriber numbers low.”
The top six platforms accounted for 86 per cent of the region’s SVoD subscribers by end-2019, with this proportion to climb to 94 per cent by 2025. Netflix will add 3.6 million subscribers to total 5 million by 2025. Disney+ is not expected to start until 2022, but will have 1.37 million paying subscribers by 2025.
Showmax will have 1.41 million paying subscribers by 2025 – with many more receiving it for free as part of their premium satellite TV subscription. Multichoice has a distribution deal with HBO, which is likely to prevent an HBO Max launch in Africa.