The amount of global streaming accounts is predicted to reach 1.1 billion by the end of 2020, surpassing the number of traditional pay-TV accounts for the first time.
According to figures from GlobalData, it is not just cost savings that is driving the move toward streaming, but also the flexibility and the range of content available through the different services.
Danyaal Rashid, thematic analyst at GlobalData, commented: ‘‘Internet TV will be the single most important technology driving earnings in the film and TV industry over the next two years. There has been a rise in the number of users cutting the cord on their traditional pay TV subscriptions and opting instead for a range of subscription video on demand (SVoD) services.”
Netflix still leads the pack, according to GlobalData, but the other services are attempting to compete not only by adding to their content library, but by also improving upon their user interface.
Rashid continued: ‘‘The increased competition in this space has led to a content war. Players are building up their content libraries in an effort to outperform the rest, but this has come at a high price. For example, Netflix spent $15 billion on content in 2019.
“Content alone will not be enough to win this battle and dominate the market. Each platform must have an intuitive user interface that is aided by AI. This is an area where Netflix has been leading, but other players are racing to catch up.”