What They Say
Advanced TV blog published an article based on a presentation by Tristan Veale of Futuresouce Consulting that sets out the competition between Pay TV ($127 billion in 2020) and SVoD ($55 billion in 2020) with SVoD growing rapidly.
“Looking to transactional video, which includes physical disc sales as well as digital purchases and rentals, this is set to reach $17 billion in global spend in 2020. However, the overall trend is in decline for the short term, as consumers are moving away from spending on DVDs and Blu-rays at a faster rate than the increased purchasing via digital platforms, despite the boost to the market in 2020,”
he observes.
As we have reported before, younger viewers favour SVoD and how the market develops will depend largely on whether their behaviour changes as they get older.
What We Think
I don’t think your behaviour changes to switch to serial channels once you have got used to SVoD and on-demand programming. That’s not to say there is no room for linear channels, but clearly they will be a lot fewer and lower in importance in the future. Sport remains one of the few drivers of traditional PayTV. The other factor will be the proliferation of different SVoD providers and the mounting costs of multiple subscriptions. (BR)
I found this interesting comparison of the pros and cons of linear viewing as summarised by Kantar in a survey for Ofcom in the UK.
