The rapid growth of streaming TV, accelerated even further in 2020 by Covid-19 and widespread lockdowns, will force a strategic shift in business models according to Ampere Analysis.
The company states “compounding” will impact every aspect of the TV value chain from content strategy to the way streaming services are packaged and sold to the end user. Ampere said it’s using the phrase in the sense of both combining and adding to, and predicts it will characterise global TV throughout 2021 as the streaming TV boom forces a re-engineering of the TV value chain and the strategies for getting TV to viewers.
According to Ampere’s research, there are now more than 400 million subscriptions to streaming services across the US and the ‘big 5’ Western European markets. The average US streaming household now stacks an average of four different subscription video services, while in the five largest Western European territories, streaming homes have an average of two services. Overall across Western Europe and the USA, almost 10 per cent of SVoD homes already take five or more services.
The company adds that the breadth of choice in the streaming market means compounding (or bundling) multiple streaming services into packages must be the next step in the evolution of the streaming market.
Guy Bisson, research director at Ampere Analysis said: “AVoD, studio-direct streaming launches, the strengthening of local and broadcaster-led streaming, and the turbo-boost that came out of the blue in the form of Covid-19 have brought the industry to a pivot point. That pivot point will lead to a shift in thinking that will change the way content creators, distributors and content aggregators, platforms and channels think about streaming in the wider TV market. In 2021, compounding is here to stay in every portion of the streaming value chain.”