Broadband Speed and Adoption Are Driving SVOD Growth

Dimitar Serafimov | Mon Apr 10 2017 | Industry insights


In this post, we'll discuss the most important factors for OTT acceptance. The enhancements in broadband speed and the increasing internet adoption give a great rationale for further growth of subscription video.

SVOD is a marvel of modern entertainment and in recent years its growth has been colossal. But, sometimes, an SVOD service is only as good as the broadband connection serving it.

Netflix ISP index shows positive signs

Now, what’s interesting is Netflix’s ISP Index. In a nutshell, the ISP Index lists the average prime time bitrate for Netflix content streamed to Netflix members during a certain month.

This chart, which visualises the index, shows the best and worst performing countries and clearly shows that on the whole, speeds are on the rise…

Source: Netflix Source: Netflix ISP monthly index

According to the Netflix ISP Index, as of January this year, Comcast is winning in the speed steaks, delivering an average Netflix speed of 3.83 Mbps. Comcast was closely followed by the likes of Optimum and Brightcove House Networks, coming in at a rate of 3.79 and 3.71 respectively.

Internet connectivity speeds up, Akamai's report says too

According to a recent report from our tech partner Akamai, broadband speed and adoption across the globe is on the rise - a big plus considering SVOD providers are offering richer, more intuitive user experiences than ever before.

In fact, the average connection speed increased in every country surveyed over a one-year period, except Russia, which saw no change compared with the year before. What's more, 27 of the 31 countries surveyed confirmed average connection speeds of or above 10 Mbps in the fourth quarter, up from 26 in the previous quarter.

Regarding adoption, boasting a rate of 73%, Switzerland regained the top spot among surveyed European countries for 10 Mbps adoption, surpassing third-quarter leader, the Netherlands. All 31 European countries involved showed yearly gains in the fourth quarter, with Croatia, seeing its 10 Mbps adoption rates more than double (146%) year-on-year.

David Belson, editor of the State of the Internet Report, had this to say about the subject...

“Internet connection speeds continued to show positive long-term trends around the world, with particularly strong year-over-year increases across all broadband adoption metrics. When Akamai first published the report in 2008, we defined ‘high broadband’ as 5 Mbps and above, which nine years ago had an adoption rate of 16 per cent globally. We’re now seeing a 15 Mbps adoption rate of 25 per cent worldwide. The upward trends are encouraging as businesses create and deliver even richer experiences for bigger audiences across the Internet, but accentuate the need for organizations to optimize those experiences for the myriad connected devices their customers are using.”

Whether you delve deep into the metrics or not, there's no denying that broadband speeds and adoption are going in the right direction - and are two of the most prominent drivers of the SVOD market.

By speeding up delivery, opening up new tech-rich possibilities and helping to deliver a far superior user experience than the SVOD services of yesteryear, broadband speed and adoption will continue to push the market forward and into new, herculean realms.

What makes a winning SVOD service? Watch the replay of our recent webinar titled "Succeeding with SVOD", co-hosted with Brightcove:

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