Multiple subscriptions for premium video content in households will increasingly become the norm as more consumers add supplemental services to their pay-TV subscriptions, new research suggests.
Deloitte predicts that this year more than 50 million homes will have multiple subscriptions, a traditional pay-TV platform, and an additional SVOD service through their pay-TV service. More than 10 million additional homes will add services through broadband providers.
The declining price of HDMI dongles will further stimulate the market for multiple services as it becomes easier to connect televisions to the Internet. An estimated 20 million to 30 million of the devices are expected to ship in 2014.
Deloitte points out that the ubiquitous nature of the Internet and high-speed broadband is diluting the concentration of content creation and ownership. That likely will result in more content owners going directly to end-users rather than going through platform owners, creating a new market for them and for companies that deliver content.
But the real increase in multi-subscription homes will come as content owners - like WWE and HBOGo – make their content available directly to subscribers, Deloitte predicts. It expects that 20% of homes in select markets will have three or more subscriptions by 2015 as broadband speeds increase.