Paid VOD services more popular than paid TV
Krzysztof Żelazowski
ICT Market Analyst
The cumulative value of the paid VOD services market in Poland reached 2.3 billion PLN in 2023, with a year-on-year growth rate of 28%, according to the latest PMR report, which includes data and forecasts for the paid TV and VOD market.
Sharing streams powers the penetration rate of VOD services.
Penetration of paid VOD services among Polish households is in a strong upward trend. In 2023, it reached 65%, surpassing paid television services. The base of households using subscription VOD services is largely built on households using others’ subscriptions. Account sharing is a popular way to optimize consumer spending, but it is decidedly not beneficial for service providers, as evidenced by declining average revenues per paid service user. In 2023, Netflix limited account sharing, which brought positive results for the provider – the number of subscriptions increased significantly. Disney has announced similar actions.
The development of technology, including widespread access to high-speed internet in Poland, has contributed to the growing popularity of VOD services in the country. The growth of the VOD services market in Poland is also a result of changing consumer preferences. More and more people value the ability to watch their favorite movies and series on demand.
Penetration of Polish households by paid television and paid VOD services, 2021-2023, 2027, and 2029.
| 2021 | 2022 | 2023 | 2027f | 2029f | |
|---|---|---|---|---|---|
| Pay TV services (%) | 60,6% | 58,6% | 58,6% | 56,4% | 54,4% |
| Paid VOD services (%) | 47,0% | 57,9% | 64,8% | 75,8% | 79,6% |
* excluding the overlap effect between different types of VOD
Note: in relation to the total number of households in Poland – estimation
f – forecast
Source: PMR, 2024
Significant changes in the list of major players
Netflix will not lose its dominant market position in the coming years, but its dominance will weaken. Competition from other platforms is increasing. In 2023, the SkyShowtime service launched and quickly gained several hundred thousand subscriptions. Then, in 2024, the Max service was introduced, replacing HBO Max. Warner Bros, the owner of Max, aims to merge Max with premium content from the Player.pl platform. Meanwhile, Player.pl itself is set to transform into an AVOD (advertising-supported) model, aiming to attract a broader audience by offering free access to content in exchange for watching ads.
The merging of offers provides the service with an advantage, as some consumers point out that fragmentation and too many services are weaknesses of SVOD platforms. As a result, consolidating offers may prove to be an attractive solution, allowing access to a wide range of content in one place, addressing the growing expectations of consumers.
Households using VOD services in the subscription model in Poland, by time of subscription in a year, 2024
| 1-3 months (%) | 9,5% |
| 4-6 months (%) | 8,4% |
| 7-11 months (%) | 9,7% |
| Year-round subscription (%) | 72,4% |
Note: answers to the question: How many months on average per year do you use and pay for access to SVOD services in your household? The survey was conducted in July 2024 using the CAWI method on a sample of 2024 adult Poles, respectively. Data for the group of respondents subscribing to paid VOD services.
Source: PMR, 2024
The rotation of SVOD services is becoming more popular
Market fragmentation is also contributing to the increasing popularity of rotating SVOD services. This phenomenon involves periodically switching between services based on desired content. Users subscribe to a particular service for a few months to watch new seasons of favorite series or film premieres, and then cancel the subscription in favor of another platform that currently offers more attractive content. This model of consuming video content is becoming more popular, especially among younger generations.
Most viewers do not want to watch ads, but one in four consumers is in favor of them
Recently, there has been increasing media coverage about some streaming services (e.g., Netflix) planning to introduce cheaper ad-supported packages in the Polish market. So far, the only player offering such a package is Player.pl.
According to the latest PMR research from mid-2024, nearly 25% of Poles would be willing to opt for such a package. Just over half of VOD users are not inclined to watch ads in exchange for a lower price, preferring to remain in a purely paid model. They believe that a paid service should not include ads. The remaining 25% of viewers are undecided and might consider either option.
Willingness of households to use an SVOD service offering ad-supported packages in Poland (%), 2024
| Yes | No | Undecided |
|---|---|---|
| 23,5% | 51,2% | 25,3% |
Note: The study was conducted in July 2024 using the CAWI method with a sample of 2,024 adult Poles. Data pertains to the group of respondents using SVOD services.
For more information on the current state of the Polish paid television and VOD services market, please refer to the PMR report:
Pay TV and VOD market in Poland 2024. Market analysis and development forecasts for 2024-2029
In PMR, we advise and assist in the operations of your company
ICT Business Unit Director