The following post is part of our Media & Communications (SNL Kagan) solutions. To learn more about this research, please request a call.
The over-the-top subscription video-on-demand market in Western Europe has been growing steadily over the last few years, with Netflix Inc. being the most popular choice among consumers. Notable competitors include Amazon.com Inc.'s Prime Video; Barcelona, Spain-based Wuaki.tv, which is owned by Japan's Rakuten Inc.; and local players such as Sky plc's Now TV and Vivendi SA's CanalPlay.
With that in mind, Western Europe has yet to experience a rate of SVOD adoption similar to the one found in the U.S. Cord cutting has not been a major factor in the region, partly because of the lack of localized content offered by the SVOD services, and partly due to the wide availability of free alternatives.
In addition, traditional cable operators are launching their own OTT services and bundling them with their pay TV offerings, making it more difficult for international entrants to grow their market share. In response to these efforts from the operators' side, Netflix and Amazon Prime have been investing heavily in producing original content including local productions in a number of countries.
In this report, SNL Kagan takes a closer look at a number of Western European markets and specifically examining Denmark, Finland, France, Germany, the Netherlands, Sweden and the U.K. With the exception of Germany, Netflix is the service with the highest number of subscribers in each country. In Germany, Amazon Prime Video is the market leader, taking advantage of the earlier success of Amazon Prime.
Revenues coming from SVOD in the markets examined are expected to grow from $2.17 billion in 2016 to $3.76 billion in 2020, a CAGR of 14.6%. The compositional makeup of revenues imitate that of the number of subscriptions and remain fairly constant during the period between 2016-2020, with the U.K. increasing its share by 1% each year and reaching approximately 41% in 2020.