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US OTT spend to surpass traditional pay-TV spend – Strategy Analytics Forecast and other top news

US OTT spend to surpass traditional pay-TV spend – Strategy Analytics Forecast and other top news

Few key things happened around the Ad Tech & Media Tech world this week.

US OTT spend to surpass traditional pay-TV spend – Strategy Analytics Forecast

A recent study by Strategy Analytics shows that by 2024 the consumer spends will be more on streaming services like Amazon, Netflix, and Disney+ than they spent on traditional pay-TV services. As per the report in 2020 consumer spending on traditional pay-TV services fell by 8% to US$90.7 billion and in 2024 it will further decline to US$74.5 billion. On contrary in 2020 spending on streaming services rose by 34% to US$39.5 billion and in 2024 it will reach the US $76.3 billion. The report also predicted that if spending on video and TV services accounted for 81% ten years earlier, then by 2026 it will account for only 40%. Michael Goodman, director, TV and media strategies at Strategy Analytics, expressed that “The revenue picture gives the best illustration of the relative strength of new and old businesses. The fact that viewers are willing to divert an ever-increasing share of their entertainment wallet away from pay-TV and towards new internet-based services demonstrates that the future lies with streaming video services rather than legacy pay-TV players. “This is a long-term transition, but there is no doubt that the writing is on the wall for pay-TV as we have known it for more than 40 years.”

The debut of Discovery+ : Discovery’s global subscriber count reaches 15 million

Discovery communications announced in an earnings release on Wednesday that it has grabbed 15 million paying subscribers to its Discovery+ streaming service. At the end of the first quarter, Discover Inc had only 13 million global paid streaming subscribers, but the count has seen a surge after the launch of its streaming service on January 4.

Discovery +, a streaming service was launched in early January in the US charging its users $ 4.99 a month with ads and $ 6.99 without ads. Discovery +, with its unscripted and non-fiction shows, is greatly differentiated from its streaming rivals like Netflix, Disney+, etc that are popular for scripted shows. According to IBES data from Refinitiv., at the end of the first quarter, its revenue rose 4% to $2.79 billion, edging past Wall Street estimates of $ 2.78 billion. Recovery in advertising sales on its networks benefitted Discovery in achieving this feat.

Forecast on Global Video Streaming Infrastructure Market by 2028

During the Pandemic period, owing to the increasing demand for video streaming services by end-users, the global video streaming infrastructure is also expected to witness tremendous growth in the upcoming years. With the advancement in digital technology combined with high-speed internet and gadgets like mobile phones, tablets, etc it has become really convenient to stream videos anywhere across the world. High-quality video streaming demands quality backend infrastructure. Factors like growing innovations and initiatives in hardware components like transcoders, servers, modulators, transmitters to improve the quality of video streaming are expected to propel the global video streaming infrastructure market. Research Nester in its report on the Global Video Streaming Infrastructure Market stated that the market is expected to grow at a CAGR of 15.36% during the forecast period i.e 2020-2028. The market which was recorded USD 15,230 million in 2019 is expected to reach USD 54,980.4 million by 2028.

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