Global streaming subs set to reach 2bn by 2029, Ampere Reports
The global video streaming market is poised to generate $190bn annually from 2bn paid subscriptions by 2029, according to new analysis from Ampere. Key strategic developments, like Netflix’s account-sharing crackdown and cheaper ad tier offer, and rivals Disney+ and Max’s aggressive approach to bundling, are driving revenue growth in saturated streaming markets.
Ampere expects subscription streaming revenues to grow almost three times faster than subscribers by 2029. Regarding why Ampere anticipates this, and what unique approaches providers can focus on regarding per-subscriber monetization to attain Ampere's expected 30 percent growth by 2029, Maria Dunleavey, Research Manager, told Streaming Media, "Well-developed streaming markets, such as the UK, where 3 in 5 households already pay for a Netflix subscription, are increasingly saturated, which is impacting the subscriber growth opportunity. In these markets, the focus for Netflix and its competitors is to maximize long-term revenue growth by increasing per-subscriber monetization, and fairly recent strategic shifts are enabling them to do just this.
"Netflix and Disney have both added an 'Extra member' add-on cost to accounts and, as well as Amazon, have launched ad tiers, which both lower the barrier to entry for more price-conscious households and create a new revenue stream through ad sales. This additional revenue stream is enabling subscription streamers to take home a further $22 billion in revenue from ad sales globally by 2029, on top of the $170 billion to be generated from the sale of subscriptions. To sustain this, streamers will need to focus on reaching target ad-loads and CPMs, and continue to invest in user engagement so customers remain resilient to both increasing ad loads and subscription costs down the line."
Infographic courtesy Ampere
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