Study: SVoD subs overtake pay-TV

  •   
  •   
  •   

A report from analysts at Capgemini says that the online streaming industry has seen a huge boom throughout the Covid-19 pandemic, with SVoD services seeing a huge rise in sign-ups. The study says that before the end of 2020, SVoD services will overtake conventional pay-TV services.

Capgemini’s study, titled OTT Streaming Wars: Raise or Fold, explores the state of the media industry and looks to better understand the role of data in differentiation. Capgemini interviewed over 40 senior media executives to find out how data is used for business insights.

The study projects that SVoD will overtake pay-TV in more than 30 countries in December 2020. 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. “OTT consumption is no longer a platform for the younger generation only. Where those under 35 years-old used to be the main users of OTT, the service now leads in share of video consumption for those up to 50 years old and is nearly as popular as pay-TV for those over 50 in the US and parts of Europe.”

The report also issues a cautionary warning: “All this crowded market, multiplication of brands and new walled gardens, are leading to higher fragmentation and confusion for end users. These will have to set priorities on what their preferences are and what their budgets can accommodate. There will be higher pressures for pricing and delivery of OTT services that take into account an increase of service hopping, accelerating the battle for subscribers.”


  •   
  •   
  •   

You must be logged in to post a comment Login