Growth is abound in the OTT market as new services launch to bridge the gap in content and consumer demand, meanwhile overall use and subscriptions are up with some impressive projections.
Global subscription video-on-demand (SVOD) users will climb from 478 million today to 743 million by 2023, according to Rethink Technology Research. The analyst firm said that the US market will rise from a SVOD and vMVPD base of some 146.5 million today to 236.6 million subscriptions by the end of 2023.
Europe and Asia are expected to be neck-and-neck in terms of SVOD revenues by 2023, but with far fewer subscribers in Europe paying significantly more than those in Asia – a region dominated by large ad-supported VOD streaming numbers.
“Netflix will continue to lead in SVOD in both subscribers’ numbers (outside of China), but will make up 194 million SVOD customers out of 743 million globally by 2023, some 26% of total global subscribers,” according to the report.
In 2018, IPTV overtook DTH as the second-largest multichannel platform in the world by subscribers after cable TV, accounting for 23.4 per cent of the total market of 1.07 billion households. Kagan, a media research group within S&P Global Market Intelligence, estimates that IPTV is projected to post a compound annual growth rate (CAGR) of 7 per cent subscriber over the next five years, second only to pay DTT with a projected 8.5 per cent five-year CAGR.
Russia’s leading OTT service ivi saw its revenues grow by 62% in 2018.
ComNews reports that they amounted to R3.94 billion (€53 million), which was higher than the market average.
At the same time, ivi’s market share grew from 32% in 2017 to 36% last year.
Reilly suggested the platform may pursue a “dynamic windowing” strategy of “putting the right product on the right platform at the right time”, and that all content within the WarnerMedia portfolio will be evaluated accordingly for the streaming service.
When asked where sitcom Friends – whose headline-grabbing Netflix deal kicked up extensive debate about ownership in 2019 – may end up in the future, Reilly said “the crown jewels of Warner will ultimately end up on the new service,” adding that the sharing of “destination assets” is “not a good model”.
The exec assured that, rather than go up against Disney and Netflix, WarnerMedia’s digital platform is hoping to find the middle ground for linear shows and “out of season” content, ultimately keeping viewers within the WarnerMedia orbit.
Belgian cable operator Telenet is launching the new Yugo bundle offering software based streaming TV service built entirely around the smartphone.
With the new STB-less offer the Liberty Global-owned operators is making bold move offering streaming TV to mobile phones with the possibility to cast the signal to a regular TV set using Apple TV or Google Chronecast.
Over a third of new Movistar+ subscribers have signed up for a package that includes access to Netflix since Telefónica included the subscription video-on-demand leader in its TV offering on December 11.
According to the Spanish telco, 35% of Movistar customers with access to packages that enable them to view Netflix have taken up this offer.
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