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There will be nearly two billion active subscriptions for on-demand video services in 2025, according to a new report by Juniper Research.
The report, titled OTT TV & Video Streaming: Evolving Trends, Future Strategies & Market Forecasts 2020-2025, says there will be a 65 per cent increase in OTT subscriptions over the end of 2020.
“The primary engine for this growth will be from traditional broadcasters, who are increasingly turning to streaming services in order to extend their reach and compete with online video giants such as Netflix and Amazon Prime Video,” Juniper Research said in an official press release.
According to the research, traditional broadcasters are increasingly turning to hybrid services with subscription and advertising-supported monetisation. The report cites examples such as NBC’s Peacock, and CBS All Access.
These platforms offer tiered services that generate subscription revenue along with advertisements in lower-priced bands. Such services will account for $1.4 billion in advertising spend in 2025, Juniper Research said.
“Thanks to this high level of market saturation, streaming providers need to keep their offerings competitive to retain subscribers,” said research co-author Nick Hunt. “Hybrid monetisation is one way that VOD providers can keep their offerings low-cost, and are therefore less likely to be dropped.”
The report also shares insights on preferred platforms by users. According to the report, over 70 per cent of streamed video sessions will occur on smartphones in the next five years. This is due to the “emergence of social videos on platforms like TikTok”.
“However, these do not yield a high number of advert slots per video watched, which means that smartphone advertising spend will only grow at an average rate of 2 per cent each year over the forecast period,” it said.
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