Pay TV Firms Will Dominate $126B US Video/TV Market In Spite Of Falling Sales
BOSTON, MA — The video and TV market is changing, but not as fast as many people are suggesting. In a new report, Subscription Video and TV Forecast – North America, Strategy Analytics predicts that:
“It’s not about subscribers, it’s about revenues,” says Michael Goodman, Director, TV & Media Strategies. “Focusing on Netflix subscriber numbers, impressive as they are, ignores the fact that pay TV ARPUs are still more than 10 times higher.”
The report analyzed the convergence of traditional pay TV services offered by firms like Comcast and AT&T with newer subscription video services from Netflix and Amazon Prime Video, as well as internet-based pay TV services like DIRECTV Now, Sling TV, YouTube TV, Hulu Live, and PlayStation Vue. Consumer decision-making and behavior are changing as a result of this evolving marketplace. As a result there are further questions which both traditional pay TV providers and emerging online video players should consider, including:
The report suggests that video providers will improve their chances of succeeding in this complex new environment if they focus on identifying consumer needs and desired experiences, evaluate their existing products and service offers, and monitor their market performance.
“There is a long way to go before the winners can be announced,” says David Mercer, VP and Principal Analyst. “The long-term transition to IP-delivered video will allow many players to benefit, but understanding consumer needs and how to meet them will be critical to any successful strategy.”
Links: Strategy Analytics