SVOD market set to boast 775.8MN subs, be worth $72.3BN by 2025 | VOD | News | Rapid TV News
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A study from Rethink Technology Research has concurred with other similar reports and has found that Covid-19 lockdowns are set to provide an 8.9% immediate lift to the SVOD market as consumers turn to such services to fill increased viewing hours and restrictions on cinema attendance.
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The would mean that in five years’ time, the market would have a value of $72.3 billion and 775.8 million subscribers. This growth says the analyst will cCome at the expense of traditional pay-TV services, and it adds that the uplift expected from the Covid-19 lockdowns will have long-lasting affects. When measured against our historic projections, we believe that the lockdowns will result in an 8.7% increase in subscriptions, and a 7.9% increase in revenue, in 2020.

Rethink believes that the rennet launch of streaming providers such as Disney+ and Apple TV+, soon be joined by HBO Max and Peacock. Rethink believes that the DTV players will be the nail in the coffin for traditional pay-TV approaches, and says that it is hard to see how viewers with two or more SVOD services can ever return to the conventional pay-TV model. Furthermore it believes that Disney’s arrival on the global streaming stage could not have come at a more opportune time, and it is projected to soon pass Amazon’s Prime Video viewership, and close the gap on first-place Netflix towards the end of 2025.

The analyst goes as far as to say that it regards Disney, Netflix and Amazon as having the biggest opportunity to “rip market share from the pay-TV market handed to them on a plate,” and notes that their projected success means that they could fundamentally alter the viewing habits of hundreds of millions of households. Moreover, it says that once young viewers, are locked into an SVOD library, in particular Disney’s, parents are going to be quite reluctant to cancel that service, and when the prices are this low, the SVOD services become very sticky offerings.

Looking at individual players, the research suggests that Amazon should be able to convert millions of Prime subscribers into habitual Prime Video viewers, although it is advised that it needs to ensure its apps are available on enough TVs and set tops, and ensure its user-experience is up to scratch. Similarly, Rethink believes that Disney will have to ensure that Disney+ has enough content to keep its subscribers coming back and that it will have to follow Netflix’s example, in fleshing out the libraries. Amazon has made similar moves to improve its own regional catalogues.

Interestingly, the research concludes by predicting that Disney’s Hulu and ESPN operations will pale in comparison to its flagship service, and that as it stands, Disney+ looks like the SVoD service that has the shortest shelf-life of the three.