Principal Analyst at Futuresource Consulting David Sidebottom commented: “SVoD has come of age, with consumer spend exceeding $29 billion last year, up 38% on 2017. Improving broadband quality, increasing smart TV penetration, the availability of services and perceived value are all coming together to create the perfect conditions for growth.”
David added: “In 2018 we saw many companies realign their strategies amid a raft of major media acquisitions, setting the scene for the next wave of SVoD evolution. In particular, Disney’s acquisition of Fox, along with the completion of AT&T’s acquisition of Time Warner is making themselves felt. With both intending to launch direct-to-consumer (D2C) services, this will shape the SVoD landscape in the USA and, in the longer term, worldwide.”
As per report, two top players Netflix and Amazon Prime Video accounted for one-third of all subscriptions globally in 2018. In terms of VoD spends, the two companies commanded almost two-thirds of the market.
David said: “Consumers are seeking a combination of functionality, high-quality original content and low price and, Netflix is choosing to invest back into original content programming and its library. Netflix has demonstrated continued growth in both its primary markets of the USA and UK, as well as France and Germany. Plus, Netflix has many options for turning profit, each requiring a local market-specific strategy, based on maturity of infrastructure, device usage, access to local content, GDP and market share.”