According to GlobalData latest report, this marks a watershed moment in the history of TV consumption and illustrates how the streaming revolution has changed the way that people consume TV content forever.
The number of online TV streaming accounts will reach 1.1 billion in 2020, surpassing traditional pay-TV accounts for the first time, says GlobalData, a leading data and analytics company. According to the company’s latest report, Thematic Research: Internet TV, this marks a watershed moment in the history of TV consumption and illustrates how the streaming revolution has changed the way that people consume TV content forever.
Danyaal Rashid, Thematic Analyst at GlobalData, commented: ‘‘Internet TV will be the single most important technology driving earnings in the film and TV industry over the next two years. There has been a rise in the number of users cutting the cord on their traditional pay TV subscriptions and opting instead for a range of subscription video on demand (SVOD) services. This has not only been driven by the cost benefits of switching to cheaper SVOD platforms, but also the flexibility and range of content offered by these providers.’’
The shift towards SVOD has been accompanied by a race among large media firms to establish themselves in this new world. The last year has seen the introduction of SVOD platforms from some of the historic media industry leaders such as Comcast (Peacock), AT&T (HBO Max) and Disney (Disney+). These providers are aiming to knock industry-leader Netflix off its perch.
Rashid continued: ‘‘The increased competition in this space has led to a content war. Players are building up their content libraries in an effort to outperform the rest, but this has come at a high price. For example, Netflix spent $15bn on content in 2019. Content alone will not be enough to win this battle and dominate the market. Each platform must have an intuitive user interface that is aided by AI. This is an area where Netflix has been leading, but other players are racing to catch up”, concluded.