Report: Covid-19 “watershed moment” for AVoD platforms
March 24, 2020
The coronavirus is by far the most significant theme to affect the technology industry in 2020, and traditional TV will be disrupted heavily – with casualties including audience-based talk shows and live sport.
SVoD streamers such as Netflix will not see huge profit surges because existing users pay a flat fee, and increased viewing hours will do nothing more than strain their servers, according to GlobalData, a data and analytics company.
Danyaal Rashid, Thematic Analyst at GlobalData, says: “New services such as Disney+ will scale up their subscriber numbers significantly. Covid-19 may represent a watershed moment where free-to-access, ad-based VoD services come to the fore. AVoD platforms make revenue based on the number of ads consumed, so increased viewing hours equals increased sales.”