SVOD Subscriptions To Skyrocket In Africa -Report

Revenues from Africa’s SVOD services are set to increase drastically over the next five years. 

According to a study from Digital TV Research, revenues will reach roughly US$1.06 billion by 2025, up from the US$183 million that was generated in 2019. This includes the likes of native streamers Showmax and iRoko along with massive international players such as Disney and Netflix.

In total, subscription numbers during this period are expected to increase from 2.68 million to a staggering 9.72 million.

At the end of 2019, six platforms were responsible for 86% of the region’s subscribers, with this number predicted to rise to 94% by 2025.

Netflix, already Africa’s largest SVOD with approximately 1.41 million subscribers, is predicted to see a massive increase of 3.6 million subscribers to reach over 5 million by 2025. Disney+ is not expected to roll out in Africa until 2022 but is expected to gain 1.37 million paying subscribers by the end of 2025.

Showmax, which already has secured millions of users, only has a small portion (553,000) as paying subscribers.

The report also revealed that HBO Max is unlikely to launch in Africa because MultiChoice already has a distribution deal with HBO.

Simon Murray, the Principal Analyst at Digital TV Research, said that over the last year, there had been a significant shift from cheap, local platforms towards multinational players. This means higher revenues as their prices are higher than local players, but it also keeps subscriber numbers low.

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