Australian subscriptions to subscription backed OTT video services like Netflix, Presto and Stan are set for strong growth over the next five years, according to analyst firm Ovum. Ovum’s new report claims that subscriptions ‘will grow by a factor of 17 between the end of 2014 and the end of 2019.’
By the numbers, Ovum’s forecasts show that ‘SVOD subscriptions will rise from only 270,000 in December 2014 to hit 4.707 million by the end of 2019.’ Ovum still does not expect cannibalization of the existing pay TV or free-to-air subscriptions, though there will be pressure on profitability as competition for content pushes up the cost of licensing.
Source : IT Wire
