Covid supercharges media consumption | Media Analysis | Business | News | Rapid TV News
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The global pandemic and the shift to remote work/schooling has engendered a captive audience that accelerated trends within the media and entertainment industry with streaming video subscriptions particularly benefitting leading to, says ABI Research, the online video and gaming markets reaching US$330 billion in 2020.
Tubi lifestyle 10 Nov 2020
ABI Research’s Next-Gen Content and Services market data report found that as people stayed at home, households stacked subscriptions, driving subscription revenues to over US$69 billion in 2020. 2020 gaming also saw year-on-year growth of over 22% with ISPs and CDNs reporting heavy traffic from game downloads.

Yet perhaps one of the most significant trends in 2020 was the significant boost to connected TV (CTV). The platform has been steadily increasing in importance over the past few years but, said the research, 2020 saw many ad tech companies and platforms reported strong shifts in the advertising mix toward CTV. ABI believes that the growing presence of CTV speaks to the opportunities for live and linear programming as the lean-back TV viewing experience remains a significant component of consumers’ viewing behaviour.

It added that the rapid growth in subscriptions and signups from newer entrants like Disney+, HBO Max and NBC Peacock support a new look at the “pay-TV” bundle or package – one that is put together by the consumer rather than the operator.

“While the amount of media consumption will taper off from the peaks seen during lockdowns as the world returns to a sense of normalcy, the appetite for digital content and services are expected to remain strong,” noted Michael Inouye, principal analyst of next-gen content technologies at ABI Research. “The common consensus from most industry insiders is a shift in the growth curve rather than an expected dip to pre-pandemic forecasts.”

Looking to the future, the Next-Gen Content and Services market data reportNext-Gen Content and Services market data report observed that the content landscape was shifting, but in some regards, it would not be too dissimilar from the previous status quo. “If a consumer puts together a list of streaming video subscriptions and spends the same as a traditional pay-TV package, is that not pay-TV, ,” Inouye added.

“Ultimately these changes create opportunities for new entrants, but it also allows for incumbents to enact strategic changes to remain competitive – for example, pay-TV operators becoming service aggregation hubs. What these changes do speak to are alterations in the distribution channels like cloud delivery and opportunities stemming from new technologies like 5G and out-of-home entertainment and advertising.”