2020 undoubtedly has been a pivotal year for the OTT industry. From viewers consuming content under lockdown on video streaming platforms to physical events getting migrated to virtual platforms- 2020 has witnessed it all. As we wind up this strange yet eventful year, here are some streaming trends that truly changed the face of the OTT industry.
Video Streaming Trends: The Popularity of Streaming Services
Connected TV streaming is getting more popular and a recent report states that 72% of households with WiFi now stream video on their connected TV (CTV) screens. there was a massive increase in CTV viewing this year with a big spike from 44 to 50 million in 2020.
Out of numerous svod players in the market, there are four players that stand out — Netflix, Amazon Prime, Hulu, and Disney+.
Netflix Dominates the SVoD Industry
As 2020 ends, Netflix still retains its position at the top as the best global entertainment streaming brand. Undoubtedly the pandemic helped accelerate the surge in the new sign-ups during the first half of the year. Although its subscription momentum slowed a bit during the summer, Netflix is still on track to add roughly 30 million new members by the end of the year. It will also likely break the 200 million global subscriber mark by the end of this month, or early in 2021 at the latest.
Interest in Indie Films
The lockdown has increased interest in Indie and arthouse films where viewers are willing to buy from broader sources than their usual pipeline. Streaming platforms have witnessed willingness to buy library titles. Normally the sweet spot for SVOD is commercial films. However, now the scenario is different as Netflix’s recent deal with France’s MK2 for rights to a dozen cult international arthouse titles, brings forward a different trend. Regulation in Europe, which requires streaming services to devote at least 30 percent of their on-demand libraries to locally-made content, is also helping drive acquisitions.
Rise of AVOD
Notwithstanding the fact that subscription services understandably dominated the streaming landscape, ad-supported video on demand (AVOD) services broke through in a big way in 2020. With consumers indicating they are maxing out on paid video streaming subscriptions, ad-supported content is currently in-demand, giving advertisers a real opportunity to reach key consumers.
Ad-sponsored streaming may come out strong in Europe as a recent IAB research report showed that two out of three Europeans don’t want to spend more than 20 Euros on subscription TV services like Netflix/Amazon Prime and that those same viewers are willing to watch ads.
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