SVOD revenues to double by 2021: Juniper

Subscription video-on-demand service (SVOD) revenues will double by 2021, as broadcasters and TV network providers look to enter the market amid a trend in cord cutting and shaving, according to a new report. Juniper Research Ltd. found that revenues from such services, including those operated by Netflix Inc. and Amazon.com Inc., will more than double in five years to $34.6 billion US, from $14.6 billion US this year. The report comes on the heels of Netflix’s second-quarter earnings report on Monday. The streaming service said it gained 1.7 million subscribers, growing to 83 million, though it missed its expectations by 800,000. In a letter to shareholders, Netflix executives said the “un-grandfathering” of longer-tenured members that occurred in the quarter in Canada, the United Kingdom, Ireland, Latin America and the Nordic countries, “may moderate near-term membership growth,” but said it expects the added prices to “satisfy members,” thus driving long-term growth. “We experienced a…uptick in churn in early April in Canada, where there has been no recent increase in SVOD competition but where un-grandfathering is also underway,” the letter added. Netflix announced the price hike earlier this year. Still, in the United States, Netflix is now “level” with AT&T Inc.'s DirecTV and Comcast Corp., which have 47 million and 47.7 million subscribers, respectively, according to Juniper. This is occurring as traditional network TV is losing subscribers. Juniper said that The Walt Disney Co.’s ESPN has seen a subscriber loss of seven million between the 2013 and 2015. “This could force the service to launch its OTT platform,” the report read. “If the concept of cord shaving continues, those services which rely on carriage fees linked to subscriber numbers, could go out of business.” Juniper added that part of the reason for these SVOD services’ success is their original and exclusive content. It gave the examples of Netflix’s own Orange is the New Black and Amazon’s Man in the High Castle. “The test will be whether it can meet its original content and production costs,” Lauren Foye, the author of the report, said in a press release. She added that Hulu, Netflix’s U.S. rival, is close to matching the amount of content Netflix has and others are “pushing new models,” including Amazon Prime video and Alphabet Inc.'s YouTube Red. In January, Netflix launched in 130 new markets simultaneously and is now available in 190 countries.

SVOD revenues to double by 2021: Juniper

Brief | July 19, 2016

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

SVOD revenues to double by 2021: Juniper

Brief | July 19, 2016

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Related Stories

CBC’s Tait says IP ownership has to remain front and centre of CanCon rules; Amazon disagrees

Streamers should be obliged to sell cable integration apps to small BDUs: CCSA

Netflix and MPA-Canada want C-11 to be flexible for global undertakings

C-11 will “hang over the system until Supreme Court has spoken” over jurisdiction: Palmer

Reuse & Permissions

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us