Subscription video on demand (SVOD) services will account for just three per cent of the global pay-TV market this year, reports Deloitte.
The accounting firm predicts that by the end of last year up to 50 million homes globally will have two or more separate pay-TV subscriptions, with the additional subscriptions generating about $5 billion in revenues.
Over the coming years, Deloitte expects the number of households with multiple subscriptions to continue to rise as more content owners make their content available via SVOD delivered OTT using broadband connections.
By the end of 2015, 20 per cent of homes in selected markets will have three or more pay-TV subscriptions, as more rights owners make their content available via video on demand (VoD), as broadband speeds increase and with premium programming increasingly being used as a customer retention tool.
Demand for SVOD is likely to be further increased by the growing availability – with 20 to 30 million units expected to ship in 2014 – of Wi-Fi enabled streaming dongles that provide access to SVOD services via the HDMI port.