According to a report by Juniper Research, the global number of digital video subscriptions is projected to increase by 14% over the next five years, rising from 3.1bn in 2024.
This growth is anticipated to be slower due to subscription fatigue in developed markets.
While developed markets are saturated, with most households subscribing to at least one digital video service, many consumers are unwilling to expand their streaming budgets to accommodate additional services—this forces video streaming platforms to compete for market share by displacing existing subscriptions.
The research highlights emerging markets as a key area for sustaining growth. To be effective, these markets necessitate investment in localised content and partnerships with telecom providers. The expansion of high-speed, low-cost internet, affordable smartphones, and mobile-only streaming subscriptions lowers the financial barrier for consumers in these regions.
Subscription bundling is an effective strategy for mitigating consumer fatigue while maintaining revenue. For instance, the discounted bundle offered by Spotify and Hulu appeals to price-sensitive consumers and expands their audience.
To capitalise on growth opportunities in emerging markets, video streaming services must partner with local telecom companies to bundle their products, facilitating proliferation in countries with smaller banked populations.
The new Research Suite provides the most comprehensive assessment of the Subscription Economy, offering analysis and forecasts for over 47,000 data points across 60 countries over five years. It includes a ‘Competitor Leaderboard’ and examines current and future market opportunities.
