The global number of digital video subscriptions will grow by 14% over the next five years; rising from 3.1 billion in 2024, according to reports from a Juniper Research study.
This slow growth can be attributed to subscription fatigue in developed markets. The research identified the opportunity in emerging markets as being key to sustaining growth, but that this would require investment in localised content and telecom partnerships to be in place to be effective.
Developed markets are saturated with digital video subscriptions, with most households paying for at least one. However, households are experiencing subscription fatigue and are unwilling to increase their streaming budget to add new services; forcing video streaming services to compete for market share by displacing existing subscriptions.
The research found that subscription bundling is an effective option for relieving consumer subscription fatigue while maintaining revenue. For example, Spotify and Hulu offer a discounted bundle; appealing to price-sensitive consumers whilst expanding their audience.
Due to the expansion of high-speed and low-cost Internet, emerging markets represent a significant growth opportunity for video streaming platforms. This is being complemented by the increasing affordability of smartphones and the development of cheap, mobile-only video streaming subscriptions; lowering the financial barrier to entry for consumers in these regions.
To realise this, video streaming services must partner with local telcos to bundle their products together; allowing video streaming services to proliferate in countries with smaller banked populations.
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