Streaming Video No Longer an Existential Threat to Linear or Pay-TV, Says Omdia Analyst: ‘Perversely, Advertising Keeps Creeping Into TV’
variety.comNaman Ramachandran The direct-to-consumer SVOD model which is undergoing uncertain times was the subject of a presentation by Tony Gunnarsson, senior principal analyst, OTT video, media and entertainment at Omdia.
Gunnarsson was speaking at Singapore’s Asia TV Forum and Market. The number of pay-TV subscribers remains above one billion and is likely to remain so for the foreseeable future.
With revenues of $195 billion, pay-TV remains the largest revenue sector by far, Gunnarson said, driving more than half of the global TV and video market.
The key takeaway from the presentation was that despite innovation, streaming remains unable to fully replace pay-TV . “SVOD has proven to be a great vehicle for unbundled access to TV and movies, but the low ARPU [average revenue per user] nature of the SVOD model is increasingly being seen as flawed,” Gunnarsson said.
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