Billion zloty VOD market observed during unprecedented boom

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The value of the VOD services market in Poland exceeded one billion zloty in 2019. The market owes its prosperity mainly to subscription services, which are responsible for more than half of its value. This year there will be a record increase in the net number of subscriptions for SVOD services. This will be because of the organic growth of the market and the lockdown related to the COVID-19 pandemic.

PMR data indicate that the value of the VOD paid services market in Poland is growing rapidly. In 2019, the revenues of VOD providers exceeded one billion zloty. According to PMR, the VOD market is currently experiencing its most significant boom, which has, in fact, been continuing for three years. This year will mark the apex of market growth and a historical gain. In addition to the fact that the market is experiencing organic growth, there will be an additional “boost” in the form of the epidemic: i.e., the lockdown caused by the COVID-19 pandemic. In subsequent years the market will be increasingly saturated with paid VOD services and, as a result, a reduction in market growth potential is expected (CAGR 2020-2025: 8.1%).

The main foundation of the positive market situation is definitely the subscription services subgroup (SVOD). According to PMR, this accounts for more than half of market value. The figure rises when the revenues from the HBO GO service via the operator channel, i.e. distributed mainly as a supplement to the pay-TV service, are included. PMR estimates that in 2019 the number of subscriptions to SVOD’s services (with HBO GO via the operator channel excluded because of its specific characteristics) was already more than 2 million, boasting a two-figure organic growth rate. Given that there may be several subscriptions per household, this gives a penetration rate for SVOD services in Poland of about 9% of all households in the country. The rate is doubled by sharing subscriptions between different users, but this does not boost market value and only weakens the earning potential of VOD providers.

In 2020, because of the COVID-19 pandemic, PMR expects the increase in the number of SVOD subscriptions to accelerate. During this time, the net increase in the number of new subscriptions will be half that of last year. The lockdown associated with the epidemic will perpetuate the need for existing users to use the service for longer periods and will result in an influx of completely new customers. The effects of the epidemic will also be spread over the coming years – some users who are encouraged to use the SVOD platforms during the epidemic will eventually return to their regular subscriptions. The average and, above all, the long term outlook for the SVOD market involves an influx of “latecomers” and the standardisation of the service among existing subscribers.

Pay TV and VOD market in Poland 2020-graph2