A new study from Juniper Research found that the global number of digital video subscriptions will grow 14% over the next five years, as emerging markets provide an opportunity for organic growth.
A new study by Juniper Research found that the global number of digital video subscriptions will grow 14% over the next five years; increasing from 3.1 billion in 2024.
This slow growth can be attributed to subscription fatigue in developed markets. The research identified the opportunity in emerging markets as key to sustaining growth, but that this would require investments in localized content and telecoms partnerships to be effective.
Subscription packages to relieve fatigue in developed countries
Developed markets are saturated with digital video subscriptions and most households pay 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.
Research found that subscription bundling is an effective option for alleviating consumer subscription fatigue while maintaining revenue. For example, Spotify and Hulu offer a discounted package; attract price-sensitive consumers while expanding your audience.
Infrastructure improvements facilitate growth in emerging markets
Due to the expansion of high-speed, low-cost Internet, emerging markets represent a significant growth opportunity for video streaming platforms. This is complemented by the increasing affordability of smartphones and the development of affordable mobile-only video streaming subscriptions; Reduce the financial barrier to entry for consumers in these regions.
To achieve this, video streaming services must partner with local telecommunications companies to bundle their products; allowing video streaming services to proliferate in countries with smaller banked populations.
