Skip to main content

Video Streaming Trends and Impact on Telecom, Media & Entertainment Industries


Introduction

Online video streaming has become trendsetter in transforming global telecom, media and entertainment landscape and gaining the mainstream adoption with ever-changing consumer behaviors and patterns. In the zettabyte era, over-the-top (OTT), subscription video-on-demand (SVoD), cord-cutting and streaming services have witnessed a massive surge in adoption by urban household globally. According to Statista[1], in 2020 global video-on-demand (VoD) was estimated to touch US$61bn with total number of 1.49bn VoD users worldwide. United Kingdom and Unites stated emerged as the country with the highest OTT penetration rate and the country with highest SVoD revenue worldwide in 2020, respectively.

Current State, Growth and Outlook

According to eMarketer forecast[2], 1.88 bn people worldwide will use a Subscription over-the-top (sub-OTT) service at least once per month in 2022. This is 2x jump in overall numbers from just 4 years ago. Total sub-OTT usership will see by 9.1% jump worldwide in 2022, which will be the result of addition of 157.1 mn people in 2022 compared with last year. eMarketer estimated that there will be 127.7 mn U.S. ad-supported video-on-demand (AVOD) viewers in 2021.

According to eMarketer[3], Netflix is leading the charts with 76% of U.S. teens and adults surveyed using the platform, followed by Amazon prime video (64%), Hulu (48%), Disney+ (44%), and HBO Max (31%). However as per recent data, Netflix lost 200,000 subscribers in Q1 2022[4], which was its first subscriber loss in last decade. This resulted in company looking to accept advertising option and cracking down password sharing menace to uproot the slow growth/degrowth factors. Other video streamers are also venturing out into new markets and features and bundles including live sports, ad-supported subscription tiers. This is the step taken to diversify the OTT services in order to overcome a slowdown in subscribers.

What’s driving video streaming?

Current state of global internet is an enabler in surge of video streaming worldwide. Cisco annual internet report provides a promising picture of global internet adoption, device/connection proliferation and network performance. According to the forecasts of the Cisco annul internet report (2018-2023)[5], there will be:

·      5.3 bn total Internet users (66% of global population) by 2023 vs. 3.9 bn (51% of global population) in 2018,

·     3.6 networked devices per capita by 2023 vs. 2.4 networked devices per capita in 2018,

·    13.1 bn global mobile devices by 2023 (1.4 billion 5G capable) vs. 8.8 bn in 2018, and

·    110.4 Mbps of global fixed broadband speed in 2023 vs. 45.9 Mbps in 2018.

Business Opportunities for Telecommunication, Media, and Entertainment Industries

The industry landscape for Media and Entertainment companies witnessed a massive change since the onset of pandemic. Today in the zettabyte era of 5G and well-connected devices, massive amount of digital data has been getting streamed on devices, which helped the over-the-top (OTT) platforms to see a business boom. 5G is further helping in better localization of data trough mobile edge computing. Also, the cost of data storage and utilization can be minimized, as users can store the content locally. Through these ways, overall structure of a circular economic model is getting strengthened, which is further helping the Media & Entertainment industry players to deliver targeted, localized content optimally and thus building an efficient sustainable model.

 OTT platforms have the advantage at adaptability over conventional services, as they are at ease in changing their business dynamics to fit consumer’s behavior and emerging trends. This accelerated the cord cutting trend globally. Since OTT platforms use the telecom operator’s infrastructure to run their services, it is helping telecom operators in creating bundled services to cater to consumers and thus providing an ecosystem of services with OTT players to gain better market share and achieve sustainable growth model.

 The business dynamics of OTT platforms is having a catalytic effect on the Film and television industry to rethink their approach and distribution. More numbers of movies are getting released and streamed over OTT platform globally, which is also attracting record number of viewership worldwide. Advertisement industry, too, is witnessing dynamic change in their target approach with more personalized and geographically targeted content.

The Future

With dynamics of ever-emerging trends and fast pace of connectivity infrastructure growth, video-streaming industry landscape will follow a sustainable growth model in a circular economy in future in conjunction with telecom, media, and entertainment industries.


Comments

Post a Comment

Popular posts from this blog

The Brewing NPAs problem in the Indian Banking Industry

Burning Problem Indian banking industry is undergoing a big problem of NPA [1] (Non-Performing Asset) crisis in recent years which is eroding the profitability metrics of commercial sector banks, affecting their balance sheets (higher provisions [2] ) and in a longer run impacting overall Indian economy as well. As per recent news, SBI reported a massive 67% fall in consolidated net profit at Rs 1,259.49 crore in the quarter to December 2015, after it classified loans worth Rs 20,692 crore as having turned bad [3] . Other large Public sector banks, to quote a few like Punjab National Bank and Union Bank of India have posted substantial dip in their net profits. RBI has relaxed the norms as part of proposal on April 6 th 2015, which says banks can take 2 more years for classifying certain asset as NPA. This may help banks on going easy on provisioning against bad loans. But this is going to aggravate the problem further in longer run as it may lead to technical bankruptcy ...
Post a Comment
Read more

US High Yield Fixed Income Industry post Global Financial Crisis

High yield Bonds: An Investment opportunity post 2008 economic crisis Post 2008 economic crisis, High yield bond market has evolved significantly in terms of returns generated to investors, as they have been quite rewarding, if they went long and held it to 7 years. There are few exceptions in last quarters on 2015 and Current 2016 Q1,  but period prior to it was remarkably rewarding time for investors in this asset class. From March 31, 2009 to June 30, 2014, the high yield market returned nearly 18% on an annualized basis, with spread to worst dropping from 1,675 basis points to 372 basis points over comparable Treasury bonds (Please refer figure 1)                                Figure 1 [1] [1] Source : S&P Capital IQ LCD, SPUSCHY stands for S&P U.S. Issued High Yield Corporate Bond Index Return of High Yield bonds encompasses two components: Coupon Income an...
Post a Comment
Read more

Untold Story of the Real Padman: Arunachalam Muruganantham

When Arunachalam Muruganantham perceived the idea that he was going to do something about the fact that women in India can’t afford sanitary napkins, he went the extra mile: He wore his own for a week to figure out the best design. Chances are you've never heard of Jayaashree Industries or its owner Arunachalam Muruganantham yet. With his roots in rural Tamil Nadu, his main claim to fame is that he almost single-handedly created a model for making affordable sanitary napkins in the country. It's a subject few men know or dare to ask about. Muruganantham's curiosity about his wife's use of cloth during her periods led to shocking revelations and a long body of research. Driven by the revelation that his wife was torn between spending money on milk for the children and buying commercially manufactured sanitary napkins, Indian innovator and inventor Arunachalam Muruganantham embarked on a long and intensive journey to find a solution. His achievement – a simple machine ...
Post a Comment
Read more