More than 250 million households worldwide now pay for video streaming services such as Amazon, HBO and Netflix, according to Strategy Analytics. The number is projected to grow to 300 million by the end of 2018.
USA leads the transition
The milestone was reached at the end of 2017, according to a report by Strategy Analytics. The report predicts that it will grow to 300 million by the end of 2018 and to more than 450 million by 2022.
USA leads the transition to video streaming with 59% of households paying for at least one streaming service. The list of countries reveals that markets with good internet infrastructure are more rapidly adopting the new way of distributing TV content.
- “Streaming video is rapidly becoming a normal part of people’s entertainment options,” said Michael Goodman, Director, Strategy Analytics. “Usage is already at around half of households in the most mature markets and is likely to reach those levels in many other countries in the near future.”
The survey includes subscription services such as Amazon, Netflix, Hulu, iFlix, Viu, and others but does not include cable TV operators’ mobile apps that require an active cable TV subscription to use.
Strategy Analytics says that Amazon and Netflix are poised for further growth. Reed Hastings, Netflix CEO, also recently said that “the next 100 million [subscribers] for us is coming from India”.
- “Clearly market leaders like Netflix and Amazon will benefit from this trend, but there are also major opportunities for media companies which currently focus on more traditional pay TV and content development business models,” said Michael Goodman.
As streaming services continue to grow, consumers are increasingly abandoning conventional TV bundles via cable, terrestrial, and satellite. This trend is expected to continue.