How Netflix drives consumer spending
Consumers worldwide will spend an average of $325 this year on media content, access and technology, up 5.1% on 2017. That spike has been driven by strong growth in digital media streaming services, such as Netflix in video and Spotify in audio, both of which managed to boost their respective subscriber counts twofold compared to 2016, says PQ Media.
On a per-capita basis, Japanese consumers will spend the most on consumer media at $1,360 per capita in 2018, replacing the US as the top spending nation at $1,345.
However, subscription services growth has not been smooth. Some governments have developed censorship firewalls to limit the amount of English-language content, while other markets are demanding an increase in native-language content.
“Additionally, streaming services are facing numerous content renewals in 2019 and 2020, particularly audio services, in which the content providers are expected to raise their licensing fees substantially, which is likely to mean price hikes passed down to consumers,” says PQ Media.