International SVoD services need to focus on local programming in local languages for growth, according to the latest Pyramid Research report.
Pyramid stated that, despite the drive of OTT penetration coming from Netflix and Amazon, a lack of local content is a potential brake on growth.
Stephanie Char, Western Europe analyst at Pyramid Research, said, “OTT players should focus on domestic content and local languages to boost the uptake of their services and revenue.
“Content is vital to any successful paid video service. However, linguistic diversity in the European markets has posed a challenge to OTT service providers.
“The lack of availability of foreign content in local languages limits market penetration for international OTT players.”
Pyramid found that in Central and Eastern Europe, there is “widespread skepticism” about whether the TV markets are large enough to justify SVoD local production.
The report added that 4G penetration is driving OTT growth in Europe.
It said, “The availability of fast fixed and mobile next generation networks has significantly changed video consumption habits in Europe, driving mobile video, on-demand video and multi-screen viewing.”
