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Streaming video market puts pressure on traditional broadcasters

There will be more than 777 million global streaming video on demand (SVOD) subscriptions by 2023, more than double from 2017, according to Ooyala’s latest State of the Broadcast Industry 2019 report, which also found that the momentum only stands to increase. As Rapid TV News reports, Ooyala believes that the Disney/Fox and Comcast/Sky mergers will result in a combined spend of $43bn in new content, much of it destined for streaming destinations. The year 2018 saw a record 495 scripted shows available to US audiences, Ooyala said, and that number will likely hit 525-550 in 2019. “The report also underscores that viewers of all ages are increasingly adopting streaming services as their primary source of TV content. While Boomers and the Silent Generation (those born before World War II) remain the lifeblood of traditional broadcasters, they too are increasingly adopting over the top (OTT) and VOD platforms. The report notes that mobile platforms will be a significant factor in OTT consumption in the future, given that estimates say video could make up as much as 90% of all 5G traffic. The lesson for traditional broadcasters is to adopt the mindset of a diversified media company – as more programmers and distributors are joining, rather than fighting, the push into OTT. “Subscription and ad-supported OTT services are steadily replacing traditional content delivery, and there’s no end to the opportunity to create connections with a global audience,” said Ooyala principal analyst Jim O’Neill. “OTT is not traditional TV. It thrives upon consumer choice, often random interaction, and the convenience of viewing when, where and on what device a consumer chooses. It thrives upon its own ability to iterate in order to respond to the changing conditions of the new TV environment.” Read more

  • Wednesday, 23 January 2019

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