What They Say
A report from Capgemini, reported in Advanced Television, said that by the end of 2020, SVoD will overtake pay-TV in more than 30 countries. You can download the full report here.
Driven by younger generations, there is a significant shift towards OTT services like Netflix and Disney+, moving away from pay-TV. This goes beyond just series and films however; OTT has entered all forms of content, including sports, gaming, podcasts and theatre.
Christian Grace, European Television and VoD Markets Analyst at the European Audiovisual Observatory, quoted in the report, says:
“Traditional media business is declining. Streaming is the future because it gives the opportunity for stakeholders to establish a direct relationship with the consumer and eliminate intermediaries. Everyone is entering the race with the desire to access consumer data”
“The rise of streaming is not limited to English-speaking countries. While the United States is still far ahead, the evolution of OTT is beginning to accelerate elsewhere. India is experiencing a full-on expansion. Likewise, in China and Germany, OTT is starting to cannibalise pay-TV,”
adds the Capgemini report.
What We Think
It would be easy to fill every day with reports on streaming, so I try to keep it to a minimum. However, this feels like one of those inflection points. As the EAO points out, one of the key reasons that streaming has succeeded is the general effect of the internet ‘disintermediation’, that is taking away layers between producers and consumers. There is a question of whether, at some point, content creators go direct to consumers (although it could be argued that, seeing this coming, Netflix and Amazon have become content creators, or the drivers of content, rather than just aggregators). Of course, it seems easy to displace an expensive cable service with cheaper streaming services, but at what point does the total spent get too much? (BR)
Streaming vs PayTV – growth is clear
