The big news at IBC 2018– like the news from its American cousin, the NAB Show in April – was “Content,” with a capital “C,” how to deliver it faster and more economically. Monetization, too, was huge. “ROI” was as common as Heineken on the lips of attendees.
The shift in content consumption patterns towards digital platforms is too massive to ignore. It was reported in a recent study that OTT (over-the-top) services doubled their hours of content offerings over the last 12 months.
Revenues from European subscription video on demand (SVOD) services are expected to nearly triple to $12.4 billion, easily bypassing the combined revenues of ad-based online videos (AVOD), download-to-own video (DTO) and online video rentals, according to a new report.
Way back in 2011, just as Netflix was teething on the fingers of pay-TV operators, Amazon launched its own SVOD service, Prime Instant Video.
It largely was overlooked, already a latecomer behind Netflix and Hulu et al. But, in a column I wrote when I was editor of FierceOnlineVideo, I warned that the nascent service was as much – if not a bigger – threat to the pay-TV industry and Netflix than any of the other services.
Why? Amazon’s e-tail roots.
Subscription video on demand (SVOD) is growing on a global scale, nowhere more so than in APAC where users are expected to more than double by 2023 to more than 351 million.
Netflix is expected to be only the fourth largest service in terms of subscribers – at 24 million – behind a trio of Chinese services, Tencent (82 million subscribers), iQiyi (80 million subscribers) and Alibaba subsidiary Youku Tudou (33 million subscribers).
While European pay-TV operators haven’t seen the same cord cutting trend as in North America, over-the-top video – both subscription based (SVOD) and advertising based (AVOD) – continues to gain traction on the continent.
A new report from Dataxis said the European pay-TV market grew by just 0.3% in Q1 2018 over Q4 2017, the lowest quarter/quarter net adds on record, ending the quarter with 185 million subscribers. Since Q 1 2017, pay-TV has seen its subscriber base grow 3.3%.
What a great week(end) for streaming.
With teenagers leaving Facebook for Snapchat, Instagram and YouTube should content owners do the same?
The global streaming video industry is in the middle of a growth spurt currently as new OTT services launch and traditional content owners and distributors weigh their entry into a market that’s nowhere near its long-term peak in terms of subscribers and revenue.
In 2012, there were about 46 million OTT subscribers worldwide, that’s estimated to have increased to 401 million last year. Researcher IHS Markit said it expects that number to reach 650 million in just three years.
Sling TV is planning to offer its first-ever pay-per-view (PPV) event, the much anticipated UFC grudge match that features a pair of light heavyweights. UFC 214: Cormier v. Jones 2 features current champ Daniel Cormier against ex-champ Jon Jones who last met in 2015 at UFC 182.
Earlier this year, a survey of pay-TV providers by the Pay-TV Innovation Forum 2017 found that the majority of pay-TV execs believed data and analytics will be critical to pay TV direction over the next five years.