Netflix original content poised to comprise majority of streams in 2019 | VOD | News | Rapid TV News
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The demand for Netflix Originals is estimated to overtake the share of demand for the streamer’s externally licensed titles by October 2019, according to researchers.

parrot 14 dec 2018According to Parrot Analytics and Kagan, demand for content on all major SVOD platforms, including Netflix, Hulu, HBO Now, Showtime and Starz, has increased over the past year. When it comes to Netflix, from July 2017 to June 2018, the streaming service’s reliance on licenced content dropped by 10.9%.

Based on this 12 months of data, the report forecasts that Netflix will generate 50% of US audience content demand with its own original content from October 2019 onwards.

For the premium channel VOD platforms (HBO Now, Showtime and Starz), new content from their linear channels tends to be the most in-demand. However, Parrot Analytics affinity analysis reveals that the respective back catalogues of each VOD platform continue to play an important role, indicating that older titles likely remain an important driver of subscriber loyalty.

“The future for the industry is likely to be even more crowded and the winners are still unknown,” said Deana Myers, research director at S&P Global Market Intelligence, which owns Kagan. “Walt Disney is expected to debut its SVOD service in 2019, and its proposed buy of the studio and libraries of 21st Century Fox will add a vast amount of content to this service. Other anticipated SVOD launches include those by Apple and Warner Media. We estimate the overall US SVOD industry has many strong years of growth in its future, particularly as competition from Disney and Apple could impact the market.”

Other new entrants to the online video space, like Facebook Watch, YouTube and DC Universe, are also investing heavily in originals and acquired content. At the same time, content spending for Netflix, Amazon and Hulu is expected to continue to grow at double-digit rates