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On-demand to drive global pay-TV in 2015

David Sidebottom

David Sidebottom

Improving broadband infrastructure and greater penetration of connected hardware will ensure that OTT and pay-TV will flourish globally throughout 2015, according to new findings from Futuresource Consulting.

The new Video Insights series (a collection of market reports that map out and assess the current and future trends across the video entertainment landscape ) reports that SVOD continues to drive premium online video viewing in many markets, with Netflix expected to continue to lead the charge with the recent launch in Australia and new launches in Italy and Japan planned for later this year.

2014 was a mixed year for the packaged sell-through video market, with most markets performing approximately in line with expectations. 2015 is expected to witness a marginally worse rate of decline in most countries when compared to 2014, as the continued steady uptake of digital video and the gradual shift in many consumers mentality from ownership to access.

“Within home entertainment, 2015 will represent the first year that digital revenue will outperform that of legacy packaged media in some countries,” commented David Sidebottom, Senior Market Analyst, Futuresource Consulting. “This is due to the rise in popularity of online video services such as Netflix, iTunes, Amazon and local operators Blinkbox, Okko, Presto, Stan and Chili at the same time as steady erosion of consumer demand for DVD and Blu-ray. The ability to access these premium on-demand services on a TV has also been a key catalyst to growth.”

 

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