A recent report has been published by Statista which looks at how video streaming services are doing in the European market. Netflix is widely considered the pioneer in video streaming and they were among the first to enter in this continent. While there is certainly some success, it seems that the demand is far lower than is seen in the United States and Canada.
Last year Netflix and Amazon both launched video streaming services in Germany and have been spreading to other countries in the region since. The companies are seeing success and steady growth, but it pales in comparison to what they found in the US. Today in North America there are about 67 million consumers who are subscribed to a video streaming service. This has generated 3.8 Billion Euros in 2015 alone. In all of Europe, however, only about 12 million people are paying for these services.
Netflix is the leader in Europe with 40% of the German market and 37% of France. While these two countries have strong competition from Amazon and other services, the UK is strongly leaning toward Netflix, which controls 80% of the subscribers. That even beats out the lead they have in the US, which is 71% of the market.
There is no question that video streaming services are a growing success in the European market, but it doesn’t look like they will ever reach the numbers that are seen in North America. Current projections estimate that about 30% of the population of the US and Canada will be paying for a service like this by 2020. The estimates in Germany, however, say that only about 10% of the population will subscribe within the next few years and then the industry will be hitting a saturation point.
Of course, numbers of subscribers aren’t everything. The earnings per customer are also important. In Europe the average per capita revenue is expected to go up because of the fact that consumers there seem to be more loyal to services once they sign up. In addition, they are adding more first time users at this point, which generates higher rates of return.
If you’re interested in learning more about the video streaming industry and their growth throughout North America and Europe, you can see the full report from Statista HERE.
