Report: European VoD market set for slowdown
July 17, 2024
From Branislav Pekic in Rome
The Western European VoD market is forecast to reach €30.5 billion by 2027, up from €25.7 billion in 2024.
However, this reflects a significant slowdown from previous years, with a CAGR of just 6 per cent, according to the VOD in Europe 2024-2027 Report by Rome-based consultancy ITMedia Consulting.
Paid VoD (SVoD & TVoD) is expected to plateau, with projected 3 per cent growth (adjusted for inflation) over the next three years. Only sports streaming is forecast to maintain positive growth, playing a larger role in VoD offerings.
Ad-supported VoD (AVoD) is poised to be the key driver of future growth, with a projected 10 per cent CAGR. However, this increase is lower than previously anticipated, particularly from 2026 onwards.
Consumers increasingly favour hybrid models combining lower subscription fees with targeted advertising, over pure pay-only or free AVoD services.
Bundled subscriptions offering multiple SVoD services at discounted prices are expected to become more prevalent.
Generative AI will significantly impact production and distribution models, offering potential economies of scale and cost reductions. However, its effect on overall revenue is expected to be less dramatic.
The report suggests a potential decline in traditional TV and video streaming, ultimately leading to shifts in advertising spending. However, this transition is expected to be a slow and gradual process.