SVOD to overtake Pay Tv
Subscription video on-demand (SVOD) services are on cause to overtake pay television in the next three years with the likes of Amazon and Netflix leading the charge globally as well as geo-location based growing niche players whose primary focus is domestic and regional markets.As an industry insider in terms of streaming technology, compared to five years ago, online video streaming platforms have been expanding into emerging markets with localized content and user-friendly subscription methods offering many consumers entertainment alternatives including subscribing to streaming media and video on-demand services.I also think the appetite for paid content is increasing across the population and a confluence of forces is driving that.Dropping smartphone prices and improved 4G coverage have also contributed to heighten smartphone penetration and to a growth in Subscription Video on Demand services in different parts of the world.In a confidential research conducted by a major European research company, subscribers are said to prefer streaming videos online rather than going to the movie theaters nowadays.Subscribers can watch high-quality movies and TV shows online whenever they want. In addition, at the same time, they can also find the same content online for free, but since its illegal and kind of difficult to search for, most people like streaming services more.With the growing competition in the Subscription video on-demand market, online streaming services are specifically targeting locals by providing live events, sports and localized content through a mobile-centric platform.According to the study of the local Subscription video on-demand market, total paid uptake of SVOD services is expected to hit 1.2 billion as early as June 2021, overtaking the global pay-TV subscribers who reached 969 million who pay for subscription TV services.
The study found there were over 600 million SVOD subscriptions in January 2018, of which 86 per cent were being paid for and the rest were either complimentary or on free trials, a 47 per cent increase from the end of January 2017.That clearly shows the streaming industry is booming. SVOD services mostly offers subscribers access to thousands of TV shows, movies and exclusive content for a relatively affordable price specifically aimed at local markets.They offer a lot of services such as live streaming, documentaries, children’s shows and exclusive local movies. And they are very easily accessible on a desktop or anyone can download them through the mobile app.Another factor noted in the report is that many subscribers are getting access to mobile phone data that can be used to access content, which is one of the main consumer targets for SVOD companies.It is a sector that has great growth potential especially when you compare it to paid TV subscriptions which took two decade years to hit 500 million subscribers, and SVOD have only taken less than half of those years to reach that number.Most of the service providers plans to continue expanding subscriptions and their target audience through localization. Some of the notable players like Netflix and Amazon have adjusted their products to meet the demands of their consumers by compromising video quality to meet the speeds of network providers and the different phone compatibilities. On the downside, the study says despite the increasing demand for online streaming, the biggest competitor to such services is piracy. For them to remain successful, they’ll need to convince the consumer that a couple of CDs or DVDs are equivalent to the price of a monthly subscription that comes with customer service and unlimited access to content.The ease of use and growing number of devices that support SVOD services including mobiles, tablets, set top boxes and smart TVs which are helping subscriber growth. Without a doubt, SVOD is becoming the go-to instant gratification that people are looking for with regard to their content consumption.
The study found there were over 600 million SVOD subscriptions in January 2018, of which 86 per cent were being paid for and the rest were either complimentary or on free trials, a 47 per cent increase from the end of January 2017.That clearly shows the streaming industry is booming. SVOD services mostly offers subscribers access to thousands of TV shows, movies and exclusive content for a relatively affordable price specifically aimed at local markets.They offer a lot of services such as live streaming, documentaries, children’s shows and exclusive local movies. And they are very easily accessible on a desktop or anyone can download them through the mobile app.Another factor noted in the report is that many subscribers are getting access to mobile phone data that can be used to access content, which is one of the main consumer targets for SVOD companies.It is a sector that has great growth potential especially when you compare it to paid TV subscriptions which took two decade years to hit 500 million subscribers, and SVOD have only taken less than half of those years to reach that number.Most of the service providers plans to continue expanding subscriptions and their target audience through localization. Some of the notable players like Netflix and Amazon have adjusted their products to meet the demands of their consumers by compromising video quality to meet the speeds of network providers and the different phone compatibilities. On the downside, the study says despite the increasing demand for online streaming, the biggest competitor to such services is piracy. For them to remain successful, they’ll need to convince the consumer that a couple of CDs or DVDs are equivalent to the price of a monthly subscription that comes with customer service and unlimited access to content.The ease of use and growing number of devices that support SVOD services including mobiles, tablets, set top boxes and smart TVs which are helping subscriber growth. Without a doubt, SVOD is becoming the go-to instant gratification that people are looking for with regard to their content consumption.
Comments
Post a Comment