Though the 2020 pandemic has sent streaming soaring to record levels, a new study shows there’s still a lot of room for growth.
Even as some areas of the world are nearing a “streaming ceiling” (or a limit to the number of services the average household will carry), Ampere Analysis says there’s still room for 3 billion more streaming subscriptions across the globe.
The country with the most growth potential? The United States.
According to Ampere’s numbers, the maximum number of paid streaming video-on-demand services a US home would carry is eight. Ampere arrived at that number because eight services would have a price of about $900 a year, or the cost of a low-tier cable subscription.
What’s interesting though is that even if every US home only met half of the potential ceiling – four to five services – it could still mean reaching the 3 billion mark globally.
Every other country has a lower projected ceiling. In almost all cases, it’s drastically lower. Canada has the second highest ceiling at 6 services per household, but then the third place number drops to 2 to 5 services for Europe – about half of America’s projection. Norway, Australia, and Germany round out the top six and then the averages slowly go down around the rest of the world, ending with Brazillian and Russian homes carrying only 1.5 services per household tops.
What makes America’s ceiling higher? For one, there are simply more options available. But the biggest factor is likely the number of cheap options. As is true in most cases, competition means the consumer benefits.
Will streaming ever totally overtake traditional pay television? That’s hard to say. As long as high-demand content like live sports stays on the “traditional” side of things, there’s always going to be a dedicated crowd. But should that ever start to change, it could be the tipping point.