Forecast: W Europe VoD revenue growth to slow
June 28, 2022
From Branislav Pekic in Rome
The VoD sector in Western Europe will see a slowdown in revenue growth, dropping from 25 per cent a year ago to a CAGR of 7 per cent in the period 2022-2025, according to the VoD in Europe: 2022-2025: The Big Gamble report from Rome-based consultancy ITMedia Consulting.
Nevertheless, SVoD will continue to lead the market, contributing to 90 per cent of VoD turnover in 2025, forecast at €17.6 billion.
The VoD market, which exploded during the Covid-19 pandemic, is increasingly showing signs of maturity, from the stabilisation of subscriber numbers to the growth of the churn rate, ranging between 20 and 30 per cent.
In fact, rising inflation has seen more and more users cutting their spending on streaming subscriptions.
At the same time, SVoD services such as DAZN and Amazon are slowly replacing broadcast pay-TV as the traditional means of access to live sports, especially football.
With the gradual return to normality, the younger generations that first adopted SVoD are moving to AVoD services.
AVoD (and its live FAST variant) is establishing itself as a means of attracting and retaining users, with the gradual shift from linear TV to video streaming.
Among the key factors that will drive further VoD growth by 2025 are technological innovation (5G, big data, and AI); content supply (sports and exclusive rights); direct access to linear TV services (AVoD, shift from library to live content); and new consumption habits (engagement with VoD via social media and social interactions).