A company that tracks online video subscription services, Omdia, determined that 171 million subscribers were added to the streaming platform by 2022. Now, Omdia expects the number of subscribers to grow by another 143 million in 2023.
The full forecast, which extends to 2027, would result in the migration of half a billion more subscribers to the platforms over the next five years. That was the optimistic implication of an Omdia report, presented by Senior Research Director Maria Rua Aguete on Tuesday at Content Americas in Miami, via Variety.
The forecast for 2023 is half the peak of the pandemic-caused isolation-dominated increase in 2020, which saw another 280 million subscribers. This year is proving to be an understandable anomaly. The 143 million figure for 2023 is perhaps better than the 2017-2019 period, which saw average year-over-year growth of 175 million, Rua Aguete Variety said.
“10% of the net additional subscribers came from Latin America, which is expected to represent 14% in 2023,” which would equate to 18.5 million additional subscribers, according to the analysis resubmitted by Rua Aguete. This suggests a territory in another phase of growth, aided by a huge increase in Latin American content now being produced by major platforms.
Omdia’s presentation shows that 127 original Latin American productions were broadcast across all platforms in 2022. This compares favorably with 60 in 2019, 73 in 2020 and 70 in 2021.
But what about advertising? “2023 will be the year that online video advertising surpasses all other media segments with $221 billion in revenue,” Rua Aguete said, adding, “It will be the number one revenue generating segment across all media “.
This prediction is likely to increase scrutiny of measurable ad effectiveness in the industry. YouTube is the #1 video service in terms of monthly users in the age groups under and over 35 in the United States, Mexico and Brazil.
TikTok beats Netflix and is #2 for US Hispanics and Mexicans under 35. It also appears in the Top 10 for Over 35s, showing that platforms beyond a certain scale have sizable user bases beyond their core demographic. Looking at the top video services for the US Hispanic population and the wider US population, there is the surprise appearance of Tubi for the Hispanic audience. This is explained by the large Spanish-language catalog that has grown, representing 5% of its catalogues. Catering to a US population of over 60 million, Spanish catalogs are likely to continue to grow in the coming years.
The presentation concluded with an overview of the FAST (Free Ad Supported Television) industry. It’s a heavy vertical, with over 1,500 FAST channels in the US alone, but it’s clear there’s an optimistic climate for revenue growth from $4 billion last year to over $12 billion over the next five years. For the Latin American market, Rua Aguete has predicted that “Brazil will reach a turnover of 100 million dollars by 2027, equal to about half of the total market of Latam FAST”.
The post Streaming Subscriptions Expected to Grow in 2023 first appeared on Olhar Digital.
Source: Olhar Digital
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
