U.S. Subscription VOD Revenue Growth Slowing to 13% in 2022, Hitting $25 Billion: PwC Report
variety.comTodd Spangler NY Digital EditorSubscription streaming video is cooling down from torrid growth rates seen in 2020 and ’21 — fueled by pandemic lockdowns — but is still experiencing healthy expansion in the U.S., one of the segment’s most mature markets.In 2022, SVOD services in the United States will generate revenue of $25.32 billion, up 13% from last year, according to PwC’s Global Entertainment & Media Outlook 2022–2026 report, released Monday.
The segment is projected to reach $33.59 billion by 2026, representing an 8.5% compound annual growth rate from 2021-26.The 13% uptick projected for this year is down from 19.5% annual growth in 2021 and a whopping 27% increase in 2020 for U.S.
SVOD. The PwC study noted that, in the U.S. and many other parts of the world, the COVID pandemic propelled over-the-top video uptake years ahead of where it would otherwise have been — a “pull-forward” effect seen by many services.
Market leader Netflix has seen subscriber numbers turn negative in the first half of 2022, losing 200,000 in Q1 and expecting a net loss of 2 million in Q2, after enjoying huge gains the two prior years.
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