Projected Global Streaming Subscriptions to top 2 Billion by 2029
The global streaming market is poised for significant growth over the next few years, with Ampere Analysis predicting that online streaming subscriptions will reach 2 billion worldwide by 2029.
The largest increase in paid streaming subscriptions occurred in 2020, with a staggering 282 million signups. This growth was driven by pandemic-inspired stay-at-home orders, which saw people turning to streaming services for entertainment. As a result, the total number of streaming subscriptions surpassed 1 billion for the first time that year.
While the U.S. market, while currently large, is expected to be surpassed by the Asia-Pacific region in terms of growth in paid streaming subscriptions, targeting the untapped Asia-Pacific region is the most promising strategy for subscriber growth. The Asia-Pacific region is expected to see the largest increase in paid streaming subscriptions.
To reach the 2 billion subscription figure earlier than 2029, streamers will have to invest in marketing and locally relevant content. Ampere Analysis suggests that this is a key strategy for success in less saturated markets. Major players like AMC Networks, which reported 10.4 million streaming subscribers, are focusing on expanding licensing revenues and stabilizing finances to achieve this goal. Other significant actors are likely global tech and entertainment giants such as Netflix, Disney+, and Amazon Prime Video, which plan to aggressively grow in less saturated markets, particularly in the Asia-Pacific region.
The key to success in the Asia-Pacific region is leveraging increasing smartphone penetration and 5G adoption, which together spur demand for streaming services there. For example, Disney+ and Max have taken the strategy of bundling, offering their services with mobile network providers to attract new subscribers.
Netflix is also taking strategic steps to grow in the region. The company is creating an ad revenue stream and tackling password-sharing, which is a common practice in less saturated markets. In fact, Ampere predicts that Netflix will have the largest share of paid subscriptions by 2029, growing from 14.4% to 29%.
The growth in the streaming market is not limited to the Asia-Pacific region, however. Ampere Analysis currently counts 1.8 billion streaming subscriptions globally, and the company estimates that subscription streamers will generate almost $170 billion annually by 2029. The ad-supported streaming segment is also expected to generate an additional $22 billion from sales.
To surpass current subscriber expectations, streamers must double down on strategic investments in less saturated markets. Ampere Research Manager Maria Dunleavey stated that the global streaming market is poised to generate $190 billion annually from two billion paid subscriptions by 2029.
In summary, the global streaming market is on track for significant growth over the next few years, with the Asia-Pacific region expected to see the largest increase in paid streaming subscriptions. To reach the 2 billion subscription figure earlier than 2029, streamers will have to invest in marketing and locally relevant content, particularly in the Asia-Pacific region. Key players like Netflix, Disney+, and Amazon Prime Video are already taking steps to achieve this goal, and the future of the streaming market looks bright.
