Netflix and Amazon to hold over two-thirds of the Western European SVoD market by 2021
While Netflix, Inc. (NASDAQ:NFLX) continues to dominate the subscription video on-demand (SVoD) market in Western Europe, Amazon.com, Inc. (NASDAQ:AMZN) video streaming platform, the Prime Instant Video, is gradually expanding. Both the American streaming platforms held about 65% of the entire market last year, according to the London-based Digital TV Research Limited.
The research firm published a press release on Thursday, expecting Netflix and Amazon to keep dominating the Western European SVoD market over the next five years. However, the world’s largest online TV network is expected to have the major chunk of the market.
Netflix’s market share is expected to reduce by three percentage points (pp) from 2015 to 47% in 2021. Conversely, Amazon’s share is estimated to grow by seven pp to 21% over the same time period, as it will expand its services to other Western European markets. Thus, both the companies will control more than two-thirds of the market. Here’s the chart of estimated SVoD subscriber forecast for Netflix, Amazon, and other SVoD services:
The firm forecasts 55.17million SVoD users in 17 countries in Western Europe by the end of 2021, compared to 24.17 million in 2015 and estimated 32.87 million this year. Over eight million new subscribers are expected to be added in 2016.
Digital TV Research Principal Analyst, Simon Murray, said in a press release: “The UK will remain market leader, but Germany will close the gap. The UK accounted for a third of SVOD subscribers in 2015, but this proportion will fall to a quarter by 2021.”
France, Italy, and Spain are expected to see more modest growth in their SVoD markets. Although Sweden and the Netherlands have less population than Spain, they are expected to have more SVoD users by 2021. Mr. Murray believes that 31.5% of the TV households in the region will have SVoD subscriptions over the same time period, compared to 14.1% in 2015. He estimates Western European SVoD market to be worth $5.87 billion in terms of revenue by 2021, more than doubling from $2.15 billion last year