New insights from Juniper Research say that that SVOD (Subscription Video on Demand) services, provided by giants like Netflix and Amazon, will boost OTT revenues by 88% to reach $120 billion in 2022. The research also states that over a quarter of worldwide households will have an account with SVOD services by 2022.
However, the two streamers aren’t the only ones in the game. HBO is expected to spend more than $2 billion in content, the BBC $1.4 billion and Apple and Facebook another $1 billion each following the global content race.
Juniper predicts that Netflix will spend over $6 billion in 2018 seeking to out-spend traditional providers. In their attempt to deliver original content, researcher Lauren Foye still thinks the SVODs’ reliance on this is a little bit risky:
“Success will hinge on whether these providers can continue to produce hits such as Stranger Things. As consumers become more fluid in their uptake and loyalty to video services, OTTs could just as easily see users switch off.”
Clearly, the increase in content production isn’t going to be just movies. Live sporting events are playing and will continue to play very important role in attracting new viewership.
To illustrate this, recently, wireless operator Verizon made a $2.25 billion deal with the NFL for the streaming rights for their Sunday, Monday and Thursday night football matches, their playoff games, the Super Bowl and related content. This also includes mobile access to jointly-developed original content, according to Verizon.
Broadcasters often see OTT plays for live sporting events as a threat, they can surely be used as additional means of delivery to a generation of cord cutters such as millenials and gen edge who are increasingly moving away from traditional broadcasting and paid TV.
While OTT plays for live sporting events often are seen as a threat to broadcasters, they can also be leveraged by broadcasters as an additional means of delivery to an audience that increasingly moving away from traditional broadcast and pay-TV delivery: Millennials and Gen Edge viewers.