In what would represent a huge milestone for the video industry if realised, the number of online TV streaming accounts is on track to reach 1.1 billion in 2020, surpassing traditional pay-TV accounts for the first time says research from GlobalData.
The company’s latest report, Thematic Research: Internet TV, said that this potential watershed in the history of TV consumption would illustrate how what it called a streaming revolution has changed the way that people consume TV content forever.
Looking doing at the fundamental dynamics driving the changes, the analyst said that the shift towards subscription video-on-demand (SVOD) has been accompanied by a race among large media firms to establish themselves in this new world. It noted that the last year has seen the introduction of SVOD platforms from what GlobalData called ‘historic’ media industry leaders such as Comcast (Peacock), AT&T (HBO Max) and Disney (Disney+) in order to knock industry-leader Netflix off its perch. And this transition added the analyst was not only being driven by the cost benefits of switching to cheaper SVOD platforms, but also the flexibility and range of content offered by these providers.
“Internet TV will be the single most important technology driving earnings in the film and TV industry over the next two years,” commented Danyaal Rashid, thematic analyst at GlobalData. “There has been a rise in the number of users cutting the cord on their traditional pay-TV subscriptions and opting instead for a range of SVOD services. The increased competition in this space has led to a content war. Players are building up their content libraries in an effort to outperform the rest, but this has come at a high price. For example, Netflix spent $15bn on content in 2019.”
Yet GlobalData also cautioned that content alone would not be enough to win the battle and dominate the market. The Thematic Research: Internet TV report added that each platform must have an intuitive user interface that is aided by artificial intelligence, an area where Netflix has been leading, but where other players were in its opinion ‘racing’ to catch up.
Looking doing at the fundamental dynamics driving the changes, the analyst said that the shift towards subscription video-on-demand (SVOD) has been accompanied by a race among large media firms to establish themselves in this new world. It noted that the last year has seen the introduction of SVOD platforms from what GlobalData called ‘historic’ media industry leaders such as Comcast (Peacock), AT&T (HBO Max) and Disney (Disney+) in order to knock industry-leader Netflix off its perch. And this transition added the analyst was not only being driven by the cost benefits of switching to cheaper SVOD platforms, but also the flexibility and range of content offered by these providers.
“Internet TV will be the single most important technology driving earnings in the film and TV industry over the next two years,” commented Danyaal Rashid, thematic analyst at GlobalData. “There has been a rise in the number of users cutting the cord on their traditional pay-TV subscriptions and opting instead for a range of SVOD services. The increased competition in this space has led to a content war. Players are building up their content libraries in an effort to outperform the rest, but this has come at a high price. For example, Netflix spent $15bn on content in 2019.”
Yet GlobalData also cautioned that content alone would not be enough to win the battle and dominate the market. The Thematic Research: Internet TV report added that each platform must have an intuitive user interface that is aided by artificial intelligence, an area where Netflix has been leading, but where other players were in its opinion ‘racing’ to catch up.
