Africa SVOD Market Size

Africa SVOD Market Analysis

The Africa SVOD market is valued at USD 1,892.1 million in the current year and is expected to register a CAGR of 11.29% during the forecast period to become USD 3,594.8 million.

• The growing popularity of mobile devices, Smart TVs, and tablets is fueling the expansion of the subscription video-on-demand (SVOD) market. Customers' desire to watch desired shows increases the demand for content personalization, resulting in a significant number of watchers, which drives the market growth. The market influences growing access to smartphones and the internet, which creates new potential for the Africa SVOD Market.
• The increasing use of SVOD in the region can be due to the limiting genre selections, flexibility, increased device availability, internet penetration, and overall lower pricing. Furthermore, the increasing demand for customized content triggered significant adoption rates of over-the-top (OTT) devices. This offered the users the flexibility to view varied content. Also, affordable rates of high-speed internet across the united states led to a massive increase in the adoption rates of subscription services, according to user convenience. Furthermore, several SVOD apps provide features such as users streaming local or global news to their users and chat services.
• Further, 5G is the next generation of wireless technology that has the potential to drive innovation and alter media consumption. 5G is more efficient at transmitting massive amounts of data, and users may expect quicker download speeds and more connected gadgets than ever before. According to Ericsson, The number of 5G subscriptions in Sub-Saharan Africa is predicted to reach 104 million by 2027, from 2.59 million in 2021. Such huge adoption of 5g would create lucrative opportunities for the SVOD players in the region.
• Content fragmentation is another crucial SVOD trend to look out for in 2023. Content fragmentation is a method broadcasters use to attract specific demographics and increase conversions. The goal is for the content to connect with the target audience if appropriately classified for SVOD streaming delivery.
• Content fragmentation in streaming distribution can help marketers establish loyal audiences. Because content fragmentation targets particular audiences, broadcasters that wish to monetize their videos through adverts gain from it. Access to a highly targeted market is valuable for organizations looking to deliver to a target audience and increase conversions. Trends like this are expected to drive the studied market in the region.
• To expand their presence to a broader range of audiences, the SVOD firms in the region are carefully strategizing their pricing so that they can capture a wide market share and have a competitive edge. For instance, in November 2022, In South Africa, Amazon Prime Video provided the best value for money compared to other streaming services. Regarding overall cost per title, Amazon Prime Video is the most affordable, with 9,572 titles available for ZAR 79 (USD 5.33) per month - less than one cent per title. Whereas Netflix's ordinary membership is close to Amazon's at R0.03 per title, with a catalog of 5,940 titles at ZAR 159 (USD 10.71) per month, MultiChoice's Showmax streaming service is close behind Netflix, with 2,165 titles at ZAR 99 (USD 6.63) per month.
• On the flip side, SVOD services collect any personal data from their users, such as their viewing history, search history, and payment information. This data can be used to improve the user experience through personalized recommendations and content suggestions. However, it also presents significant privacy challenges. One challenge is ensuring the security of user data. SVOD services are prime targets for cybercriminals motivated by the potential financial gain of stealing user data. As such, SVOD services must invest heavily in cybersecurity measures to protect against data breaches.
• The pandemic has positively affected the studied market. Various firms have entered the market with new content. For example, MGM has announced the introduction of a new film and SVOD service in South Africa during a pandemic. It will be accessible as part of Vodacom's Video Play Premium service and as a standalone, a la carte subscription Micro Pass. The new service relied on MGM's film and television library, which includes titles such as The Hobbit, Legally Blonde, The Pink Panther, The Handmaid's Tale, Get Shorty, and Teen Wolf.