Top Stories Many people are still listening to AM and FM radio, even as Pandora is the leading streaming service among millennials and as purchased music remains popular, according to a new Morning Consult poll. ( Morning Consult ) Amazon.com Inc. is outpacing other retailers when it comes to holiday shopping, with more than 26 percent of consumers saying they do the bulk of their holiday shopping on Amazon. ( Forbes ) The NFL is testing a commercial package that would lessen the frequency and length of ads during games. ( Advertising Age ) A subsidiary of Publicis Groupe and two subsidiaries of Omnicom Group Inc. were subpoenaed by the U.S. Justice Department’s Antitrust Division in connection with a “bid rigging” investigation. ( Adweek )
Amazon Prime Instant Video’s expansion and the introduction of BritBox drive home the point: SVOD will be the leading OTT business model for the foreseeable future. Amazon’s global launch of Prime Video and the announcement by UK broadcasters BBC and ITV of a U.S. launch for a new streaming service BritBox should seal the deal for subscription on demand. SVOD has won. “In retrospewww.streamingmediaglobal.comct, if you were starting out a few years ago pushing video OTT then it is blindingly obvious that SVOD would be the most successful online video model,” says Ovum senior analyst Tony Gunnarsson. It is still early days, but the world has already been sliced up between the all-powerful Netflix and a handful of local or regional competitors. Multiple pay-TV OTT initiatives around the world indicate that OTT video is becoming increasingly core to service providers’ product portfolios. The Q1 2017 launch of BritBox is one example. The venture pairs BBC Worldwide, the commercial arm of the BBC, with commercial network ITV and U.S. network AMC (which partners with the BBC for cable channel BBC America). BritBox will offer a collection of British content including dramas that have long been unavailable in the U.S. such […]
North America will have 112 million SVOD subscribers [for movie and TV services only – excluding sports, for example] by end-2016, up by 19 million on 2015. The SVOD total is forecast to climb to 138 million by 2021. However, the North America SVOD Forecasts report only expects 117 million TV households by 2021, so the SVOD total will represent 104% of TV households. Simon Murray, Principal Analyst at Digital TV Research, explained: “It is important to stress that these SVOD figures are gross – some homes take more than one SVOD platform, especially in the US.” The average SVOD subscriber in the US will pay for about 1.5 services. From the 127 million US total in 2021, the report forecasts that 43 million will be secondary SVOD subscriptions. Putting it another way, there will be 84 million primary SVOD users in the US by 2021 – or 71% of TV households. Murray continued: “Another important point is that our forecasts include Amazon Video – some other forecasts do not. Amazon Prime subscribers do not directly pay for Amazon Video. However, to give as full a picture of the sector as possible, we calculate that 60% of Amazon Prime […]
Last week two big events happened in Amazon Inc’s world. Firstly the retail giant announced the launch of its Prime express delivery service in the world’s largest e-commerce market, crucially without the additional Prime video streaming functionality. Secondly in its third quarter earnings call Amazon for the first time identified investment in video content as one of the three reasons why it failed to generate a net profit for its shareholders (the other two reasons were increased investment in fulfilment centres and developing the Echo product.) Both events are big moments in the evolution of Amazon’s corporate growth story.