Out of 11 leading legacy entities in media and tech, which are directly involved in the Hollywood market, almost all of them have some involvement in OTT (over the top) streaming platforms/services. Netflix jump-started this new mechanism of DTC (direct to customer) delivery, followed by technology-driven entities such as Amazon and even legacy media behemoths such as Disney, Warner Media, NBC Universal, and others. However, the industry’s now wondering about future streaming growth and the overall viability of this booming space. According to Cindy Corps, the CEO of Search People Free, said that there is a rapid growth of the SVOD subscriber. At the same time, a new Lightshed Partners report estimates a doubling of SVOD subscriber counts from 650 million people globally by end-2020 to a whopping 1.25 billion individuals by end-2024. There is no doubt that SVOD will have a future streaming growth and the overall viability of this booming space.
SVOD options have arrived in a period where conventional entertainment is on the decline. This means that the OTT battles have not begun yet between titans like Netflix or Disney+ and even Amazon Prime or HBO Max. The potential subscriber count only looks set to keep posting rapid growth in the near future.
A new Lightshed Partners report estimates a doubling of SVOD subscriber counts from 650 million people globally by end-2020 to a whopping 1.25 billion individuals by end-2024. In comparison, the count of global subscribers to the pay-TV format crossed 1 billion people in 2018 as per a Business Wire report. The forecast does not also take Apple TV+ into the equation. It has also perceived subscribers of Amazon Prime as users of Prime Video. One aspect is certain- the SVOD field is now packed with contenders. However, instead of cannibalization, this has only led to more subscribers joining the fray.
From November 2019, five new streaming services arrived, namely Disney+, Apple TV+, HBO Max, Quibi, and Peacock. Quibi has already shut down but the others have cumulatively posted 125 million global subscribers. Netflix has also added another 37 million new subscriptions amidst the pandemic-stricken 2020, in spite of the presence of these biggies in the market. After finding a place in the Disney pack, Hulu has onboarded 9 million more subscriptions. Every leading streaming service is posting rapid growth, which is also making Wall Street mavens happier.
3 million pay-TV consumers in the U.S. chose to opt out of conventional bundles back in 2018, followed by another 6 million and 6.6 million people in 2019 and 2020 respectively. Within 2024, a whopping 46.6 million U.S. homes are expected to take the plunge according to reports. Streaming continues to have a profound market impact on mainstream movies and television, even though the performance of players like Apple TV+ and Paramount+ is yet to be seen.