The Digital Content Business Models: OTT & Operator Strategies 2017-2022 study also found that the sector’s major players such as Netflix and Amazon were committing budgets of more than $5 billion to original content over the coming year, with Apple and Facebook are each expected to invest at least $1 billion for the first time. Juniper calculates that while just over a third (35%) of UK households now subscribe to one or more SVOD services, this proportion rises to 76% in the US. Furthermore, Juniper argues that the trend towards multiple subscriptions per household was increasing, leading to a greater opportunity for content aggregation and curation.
The other key trend revealed in the report was that there were indications OTT players may be poised to disrupt the market for major sporting rights. Juniper noted that even though Facebook failed in its recent bid for the worldwide Indian Premier League (IPL) cricket rights, it still felt that the social network or Amazon would bid for, and probably win, at least one major live rights package in the forthcoming auction for England’s Premier League football games.
“Amazon is in a particularly strong position here, because sports packages could be bundled within Amazon Prime, with the additional retail spend generated by new customers significantly reducing the scale of net additions required to recoup the rights costs,” remarked Digital Content Business Models: OTT & Operator Strategies 2017-2022 research author Dr Windsor Holden.