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In Europe, a Bright Future for Subscriber Video-on-Demand

This year, viewers in Spain and Italy more than doubled their SVOD spending

October 5, 2016 | Advertising & Marketing | Video

The future of subscription video-on-demand (SVOD) spending in Western Europe looks quite bright: While SVOD spending will make up 49% of total home video spending in 2018, the halfway threshold will be crossed by 2020, when such spending will hit nearly 60% of total home video spending, according to a September 2016 report from IHS Technology.

Subscription Video-on-Demand (SVOD) Spending in Western Europe, 2018 & 2020 (billions of € and % of total home video* spending)

SVOD spending in Western Europe will total €4.2 billion ($4.7 billion) in 2018, and will rise to €5.2 billion ($5.8 billion) in 2020, a growth rate of about 24%.

Meanwhile, even greater enthusiasm is being played out on a national level in several countries.

For example, video viewers in Italy are close to spending €95 million ($105.4 million) on SVOD over the course of 2016—and such spending is a 112% change against 2015’s outlays. And though Spain is spending less on SVOD in total in 2016, the change against 2015 is even higher: 124%.

Subscription Video-on-Demand (SVOD) Spending in Italy and Spain, 2016 (millions of € and % change vs. prior year)

Viewers in Norway, meanwhile, will spend more than those in Spain and Italy combined: a total of about €240 million ($266 million) in 2016.

But it’s worth noting that Norway greatly outpaces its Western European counterparts when it comes to SVOD: Per broadband household, nearly €90 ($100) was spent on SVOD in 2015. In Sweden and Germany, meanwhile, those figures were about €23 ($26) and €6 ($7), respectively.

An August 2016 report from the UK’s Advertising Association (AA) and Warc estimates that broadcaster VOD ad spending will hit £205 million ($313.3 million) in 2016, for comparison to other Western European nations.

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