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How the Cord-Cutting Trend Is Affecting SVOD Apps

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Jan. 31 2018, Updated 3:15 p.m. ET

Netflix was the top SVOD app by revenue in 2017

Netflix (NFLX) was the top non-game app in terms of revenues in 2017, according to research firm Sensor Tower. Revenues from the top ten subscription video-on-demand (or SVOD) apps like Netflix, surged by 77.0% in 2017. The total figure in 2017 was ~$781.0 million across the App Store and Google Play.

This growth peaked in 4Q17, during which the revenues generated by the top ten SVOD apps rose a whopping 88.0% year-over-year (or YoY), highlighting the burgeoning cord-cutting trend. Netflix was followed by Google’s (GOOG) YouTube, Time Warner’s (TWX) HBO Now, and Hulu in the top four SVOD apps by revenue for 2017.

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Top SVOD apps saw tremendous growth in 2017

According to Sensor Tower, Netflix’s (NFLX) app generated revenues of $290.0 million in 2017, growing 113.0% year-over-year. YouTube’s revenues from its SVOD app grew 154.0% YoY. The HBO Now app made $67.3 million in 3Q17, primarily due to the popularity of Game of Thrones. However, the app made only $53.2 million in 4Q17.

Revenue growth in SVOD apps is much higher than that of other apps. The top ten SVOD apps by revenue saw revenues grow 77.0% in 2017. Total US consumer spending on the App Store and Google Play increased only 30.0% in 2017 to nearly $14.4 billion.

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