Continued growth of streaming platforms in the world, the cost of content is a problem | ICT Business | TechBuzz

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According to Omdia, the number of online subscriptions to video streaming services continues to grow worldwide at impressive levels. Their new report reveals that the global total increased from 1.14 billion at the end of 2020 to 1.34 billion at the end of 2021, up 17.7 percent from the previous year.

Omdia predicts further growth of 10.5 percent in 2022 to take the figure to 1.48 billion by the end of the year. With new services constantly entering the market and, crucially, the major players are still only part way through their global expansion efforts. This means that the market will continue to expand for several years, with Omdia’s forecasts showing that the global total will exceed 2 billion in 2027.

“Online video services continue to experience impressive levels of growth and there is much more to come. Disney+ has had an incredibly successful launch, but there are several more attractive areas to enter in the next few years. And the same goes for Paramount+, Peacock and a few others. The prospects for an alliance between HBO Max and Discovery+ also look exciting. There are many reasons to be positive about the outlook for online video over the next few years as reflected in our forecasts,” said Adam Thomas, senior principal analyst in Omdia’s TV and online video team.

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Meanwhile, global pay TV subscriptions grew by 0.6 percent in 2021, from 1.02 billion to 1.03 billion. With competition from Internet video intensifying, Omdia expects the pay-TV market to show a slow decline in the future and predicts that the number of subscriptions will fall from 1.03 billion to one billion in 2027, a decline of 1.9 percent. . And while the number of online video subscriptions is growing everywhere, the scenario for pay TV varies greatly from country to country.

Of the 101 pay-TV markets Omdia tracks most closely, the results show significant fluctuations, with 55 countries still reporting subscription growth, 41 reporting declines and five essentially static. Over the next five years, Omdia expects these opposite fortunes to continue, with countries like Indonesia continuing to see solid increases while others – most notably the US – see steady declines.

“One small note I would add is that with pay TV as a whole declining, the TV and video business is becoming more dependent on the growth of online video. But because that business was built on high investment in content matched with low subscription prices, the price-sensitive public came to expect a lot of bang for their buck. The trade-off between content costs and pricing is tricky to navigate, and we’ve already heard from Netflix that it expects to lose 2 million customers this quarter. It is abundantly clear that the continued growth of online video is by no means guaranteed,” concluded Thomas.

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