Global SVOD Services Set to Reach to $36 Billion This Year

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Is Watching Video the latest Cool Lifestyle Trend?

Analysing recent research published by Futuresource Consulting - a firm which specialises in market research, forecasts, and strategic insights into entertainment, media and technology, it is apparent that: “The Global Subscription Video on Demand (SVOD) landscape continues to evolve at a rapid pace as consumers in all regions embrace streaming subscriptions. SVOD is becoming an integral part of the video viewing lifestyle. 2018 saw: [the launch of new innovative next generation platforms such as OONA TV, which is set to offer its SVOD and AVOD services to 185 million Indonesians, and is well on course to offer the same to billions of people in other parts of Asia, the US, Africa, the Middle East, South America and Europe]; in addition to a substantial number of other companies which have re-aligned strategies against a backdrop of major media acquisitions, setting the scene for the next wave of SVOD evolution in 2019 and 2020” [1].

So What Is Driving This Unstoppable Trend?

Firstly, more and more people are boosting their enjoyment factor by forking out for smart televisions; secondly, broadband quality is improving significantly; and thirdly, consumers are now being offered an excellent choice of services [1], such as the extensive range of OONA+ Premium options, which offer great flexibility, and suit everyone's lifestyle and pocket book.  

“Netflix & Amazon Prime Video accounted for 2/3rds of all subscriptions globally in 2018” [2]

Futuresource's findings indicate that subscription video-on-demand is currently being enjoyed by over 60% of North American households, 26% in Western Europe, 21% in the Asia-Pacific region, and 19% in Latin- America [2].
In regard to SVOD spend on Netflix and Amazon Prime, however, these two entertainment giants were shown to have dominance over close to 2/3rds of the market. - Netflix came out on top in regard to revenue, subscribers and headlines, adding a massive 31 million paid viewers last year. Moreover, it has enjoyed its most flourishing quarter thus far [2]; although its future, which will involve mega competition, may not be all plain sailing.

Ideal Conditions For SVOD Growth

Futuresource Consulting's Principal Analyst, David Sidebottom, noted that: “In 2018 we saw... Disney’s acquisition of Fox, along with the completion of AT&T’s acquisition of Time Warner [which] are 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 [3].

Giving Consumers What They Want

The movers and shakers at platforms such as Netflix and OONA, are mindful of Sidebottom's perspective, that: “Consumers are seeking a combination of functionality, high-quality original content and low price.” And this is exactly what they should get...

Customer Confusion & the Battle For the Living Room

Sidebottom emphasises the fact that viewers are confronted with an increasingly perplexing video landscape; and that relationships between trusted content aggregation, or Pay TV platforms such as: Apple, Roku, Amazon channels, and even Pay-TV companies, will prove a crucial navigation aid. Further, because of the enormous number of existing users, Amazon and Apple are both in an advantageous position to do extremely well in the approaching fragmented macrocosm of aggregation. However, in the case of both mega giants, at the present time, omnipresent content is lacking on the international stage. Yet, regardless of this, this new breed of ‘super aggregators’ is set to become a crucial factor in the battle for the living room - although, in many ways, they have not realised the three essential requirements demanded by the consumer: price, quality and original content [3].

The OONA Advantage

Lead by founder and CEO, Christophe Hochart, digital strategist and AI expert, OONA is the new kid on the block using the flexibility of the latest technology. OONA offers channel and content holders multiple ways to drive substantial revenues from their channels via the OONA platform. This includes: Programmatic Video Advertising, Display Advertising with User Mobile Engagement, Pay Per View, Subscription, and more. OONA's global model adapts to each single market without changing its first-class universal user experience. The TV landscape, media content and economics of a particular country, remain the same, and every OTT solution is framed using a custom designed model which is beneficial to the channel company, the telcom, and the user.

OONA's state-of-the-art futuristic and customer-focused attributes, along with its highly beneficial business models, have empowered OONA to shoot up the ranks. - It is now listed as one of the top 5 video-on-demand platforms in South-East Asia (2018), along with HOOQ, Viu,Viki and Catchplay [4]. Further, OONA is classed as one of the top 10 video-on-demand platforms in the Asian continent in 2018, along with the aforementioned platforms, and iflix, LeTV, TenCent Video, Iqiyi and Youku Tudou [5]. Moreover, Digital TV Research has forecast that although Netflix is running in at fourth in subscriber rankings, it will nonetheless, have a slim edge if it wants to top the 2024 SVOD revenue chart [4].

References

[1]. Futuresource (2019). “Futuresource SVoD Status & Outlook Report - Worldwide Apr 19.”

https://www.futuresource-consulting.com/reports/posts/2019/april/futuresource-svod-status-outlook-report-worldwide-apr-19/ Accessed 22 Apr. 2019.

[2]. O'Halloran, Joseph (2019). “New services set to drive global SVOD revs to $36BN in 2019.” https://www.rapidtvnews.com/2019041855816/new-services-set-to-drive-global-svod-revs-to-36bn-in-2019.html?utm_campaign=youtube-to-launch-on-fire-tv-as-prime-video-comes-to-chromecast-android-tv&utm_medium=email&utm_source=newsletter_2091#axzz5lXQIJ3vI Accessed 22 Apr. 2019.

[3]. Futuresource 1 (2019). “New Services Set to Drive SVoD Revenues up 25% to USD$36 Billion in 2019.” https://www.futuresource-consulting.com/press-release/media-entertainment-press/new-services-set-to-drive-svod-revenues-up-25-to-usd-36-billion-in-2019/ Accessed 22 Apr. 2019.

[4]. Hawkes, Rebecca (2019). “Asia’s OTT revenues to reach US$48BN in 2024.” https://www.rapidtvnews.com/2019031855485/asia-s-ott-revenues-to-reach-us-48bn-in-2024.html?utm_campaign=asia-s-ott-revenues-to-reach-us-48bn-in-2024&utm_medium=email&utm_source=newsletter_2054#axzz5iWUQTfsC Accessed 22 Apr. 2019.

[5]. VdoCipher (2018). “Top 20 Online VOD Platforms in Asia [Updated 2018].”

https://www.vdocipher.com/blog/2018/07/asia-vod-platforms/ Accessed 22 Apr. 2019.