Streamers like Netflix and Disney are looking to make a profit on subscriptions

Streamers’ newly discovered willingness to prioritize profit over subs will soon be felt in a big way across the landscape, according to a report from Ampere Analysis.

The company’s latest in-depth analysis into the world of SVoD found that subscription streaming revenue is expected to grow almost three times faster than subscribers over the next five years. Ampere expects growth of more than 30% by 2029 as services focus on profitability and monetization per subscriber. By 2029, the annual revenue of the global subscription streaming market will be more than $190 billion, with Netflix accounting for nearly a third, according to the report.

While Ampère predicted that the number of submarines worldwide would pass the 2 billion mark by 2029, this increase of 200 million over the next five years will be much lower than the previous five year period, when the subs doubled with people stuck at home during Covid-19. pandemic.

The analysis is not surprising. While Wall Street favored streamers for subs over profits, Netflix changed course a few years ago and was followed by several others. This situation was accompanied by a market contraction and strikes in Hollywood, which contributed to changing strategies.

In a bid to improve their bottom line, streamers have introduced measures such as ad tiers and password sharing. Ampere said subscription streaming is expected to generate an additional $22 billion from ad sales as traditionally ad-free streaming services have moved to ad tiers.

Target APAC

Broken down by region, Ampere said APAC will be important for subscriber growth in the coming years, with the US becoming “increasingly saturated”. Streamers like Netflix and Disney have recently spent money in crucial regions like Korea and India, as the next season of Squid game is ready for launch.

Ampere predicts that just under a third of submarine growth will come from APAC – which is home to around 600 million people – a figure similar to that of North America. Over the previous five years, North American submarines more than doubled, while APAC submarines increased by 57%. The company also estimates that subs will gain 20% in the relatively untapped regions of Central and South America and Central and Eastern Europe over the next five years.

“Targeting the untapped Asia-Pacific region is the most promising strategy for subscriber growth,” said Maria Dunleavey, head of research at Ampere. “To exceed current subscriber expectations, streamers must double their strategic investments in less saturated markets. India was Netflix’s second-largest subscriber growth market in 2024, and the company has barely scratched the surface there in terms of growth potential.