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Streaming subscriptions overtook cable in 2018

For the first time ever, global subscriptions to online video services surpassed cable subscriptions in 2018, according to IHS Markit research cited in the Motion Picture Association of America's "2018 THEME Report." The MPAA report citing IHS Markit data has shown that there were more subscriptions worldwide to online video services (613.3 million) than there were for cable (556 million) in 2018, reflecting a 27 percent jump in streaming over 2017. Cable subscriptions dropped two percent in that period. IP-based TV overtook satellite, too, indicating a larger overall shift to the digital realm. The annual report covers both the home and theatrical entertainment markets (THEME stands for "Theatrical and Home Entertainment Market Environment").The data in the report also indicated that people were spending more on digital video at home than trips to the theater. While theatrical spending did grow ever so slightly in 2018 to $41.1 billion, people around the world spent a total of $42.6 billion on streaming, downloads and video-on-demand. Discs, meanwhile, declined to $13.1 billion -- just over half of what it was back in 2014. Spending on physical media is down 48% since 2014, while digital spending has increased by 170% in the same period, according to IHS Markit and Digital Entertainment Group research cited in the report. Cable and satellite are still larger than streaming when combined. More importantly, cable and satellite are still the most lucrative in terms of sheer revenue, if not necessarily profit. Cable's influx of cash grew $6.2 billion in 2018 to reach $118 billion, suggesting that those people who did stick with cable were paying more than ever. The MPAA added that most of those who were subscribing to internet services also had conventional TV, suggesting that the number of cord cutters isn't as large as you might think. These are nonetheless major milestones for internet video. It's now the most popular individual TV format in terms of sheer subscriptions, and companies wanting the widest possible reach might have to pay attention. 24i Media has been helping global brands design, create and launch innovative video streaming apps across all devices and platforms since 2009. If you need some help to create or update your online video service, we’d be happy to discuss how we can help you launch video streaming apps people love to use. Contact us today to learn more.

24i Media acquires StreamOne

24i Media acquires StreamOne

Fast-growing video app developer strengthens and extends its innovative technology stack

 

Amsterdam (The Netherlands), March 21st, 2019 - 24i Media, one of the industry-leading video app developers, has extended its platform’s capabilities by the acquisition of StreamOne, the young and innovative media technology provider that fuels the video applications of one of the largest publishers in the Netherlands, TMG. With the acquisition, 24i gets full access to the cutting-edge knowledge and technology of StreamOne, strengthening its capabilities to integrate with its strategic partners like OVPs and streaming video providers, and to optimize the end user experience.

This is 24i’s third acquisition in twelve months. It is part of its ambitious strategic plan and technology vision to continue to revolutionize the OTT ecosystem with technology innovations and to provide customers and partners with powerful new tools to better manage assets, maximize efficiencies, deliver new capabilities and optimize OTT value creation and monetization.

“The acquisition of StreamOne’s technology is a leap forward for 24i in its ambition to innovate and optimize the user experience, user interaction and consumer value of tomorrow’s OTT services. The OTT chain is really complex especially for broadcasters and content owners. With this acquisition we can simplify the creation and launch of video services for our customers,” said Martijn van Horssen, CEO at 24i. “The StreamOne architecture and expertise throughout the OTT production chain improves our cooperation with and services to our strategic partners. With the StreamOne technology we can create future-proof and seamless integrations with our technology partners. StreamOne’s technology stack also accelerates our product roadmap with new modular functionalities and strengthens the architecture of our technology stack.”

Founded in 2012, StreamOne deploys a powerful suite of tools to publish videos to any device, anytime and anywhere. StreamOne offers a robust interface that has plug & play integrations with third-parties for publishers and broadcasters.

“Today marks a transformational moment for StreamOne, and I'm delighted to join forces with one of the leading providers of video streaming apps - a global brand that is shaping the future of OTT. 24i’s proven track record, its extensive partner network and its continuous drive for innovation, guarantees a strong fundament and fertile soil for our creative ideas and technology vision to accelerate the value creation of our innovative technology stack,” said Ruud van der Linden, Founder and CEO of StreamOne. “I am excited for this incredible opportunity to contribute to accelerate and scale 24i’s business and provide a new class of next-generation OTT technology to enhance our partner and customer relationships worldwide.”

From April 8th to 11th during the NAB Show in Las Vegas (booth SU9610), 24i Media and StreamOne will show a sneak preview of their future joint products, including 24i’s fully renewed and integrated technology stack after its recent acquisitions of Vigour and Mautilus. 24i’s module-based technology framework allows broadcasters, operators and media companies to create and launch personalized streaming video services on all screens, tailored to their needs. With this modular approach, customers can build their apps with state-of-the-art components, or they can purchase a fully completed package.

   

More people are watching OTT in the living room


   

Parks Associates research has found that OTT video services have transitioned back into the home's living room, with a majority (52%) of U.S. broadband households now watching online video on a TV that is connected to the internet.

 

Its report, 360 View: Digital Media and Connected Consumers, also found that watching TV or films at home is the most popular leisure activity among US broadband households, with 55% selecting this among their top two favourite leisure activities.

 

"While the total number of hours consuming videos has declined, consumers are watching more internet video on the largest screen available," said Billy Nayden, research analyst, Parks Associates. "The number of hours consumers report watching video on a TV increased for the first time since 2014, with connected devices enabling internet video services on TV and shifting consumers away from PC and mobile viewing. As OTT competition becomes a battle for the living room, the challenge for device makers and content producers is finding the correct product mix to maximise both profit and utility." The report also found that subscriptions are the dominant business model for OTT services. As more services emerge, many stakeholders fear an impending subscription overload in US households. "As consumers' taste for OTT experimentation wanes, they will start to resist the push to add another monthly subscription to their households," Nayden said. "Many providers are starting to lead with freemium and ad-based models, in anticipation of this pushback." Parks Associates also found that 19% of consumers subscribe to either Netflix, Hulu, or Amazon Prime Video and another OTT service, compared to 13% in 2017; and overall, consumers watched 25.7 hours of video per week in 2018, down from 29.5 hours per week in 2016.

Source: Rapid TV News & Parks Associate

Netflix earns 50%+ of streaming revenues in Europe

Over the past few years, online video services in Europe have experienced rapid growth, particularly those that follow the subscription revenue model. Global players such as Netflix, Amazon and HBO went direct-to-consumer, disrupting the previous long-term relationship between subscribers and multichannel operators.

Soon after Netflix began showing signs of success in North America and Western Europe, pan-European satellite operator Sky launched its own stand-alone online video service in the UK, combining on-demand content with live streaming TV networks in 2012. Others followed, such as Canal+ with Canalplay in France and Telecom Italia with TIMVision in Italy.

Currently, five services accounted for 89 per cent of the $6 billion in consumer spending attributed to subscription online video services, according to a report published by Kagan, a media research group within S&P Global Market Intelligence.

More proof of just how dominant Netflix is in Europe comes from new data by analysts at S&P Kagan. According to new research from Kagan, Netflix accounted for 52% of all subscription VOD revenues in Europe at the end of 2018.

With 52% of all SVOD revenues in Europe, Netflix is comfortably ahead of all competitors. Amazon Video is a distant second with 21%. In terms of active paid subscriptions, Kagan revealed that Netflix is responsible for 52 per cent of total revenue, followed by Amazon Prime Video (21 per cent), Sky (four per cent), HBO (three per cent) and Viaplay (three per cent).