Ampere Analysis’ Guy Bisson reminded delegates that in Europe since 2012, subscription video on demand additions have been outstripping traditional pay-TV.
This has created the SVOD only home. In a number of developed markets it has passed 10 per cent with an average of 8 per cent.
There are other changes too. Facebook and Twitter now entering the content business and challenging for sports rights.
Likewise Sky has diversified across the value chain, through entry level service Now TV, and up toward the new Sky Q Box.
Content providers have been able to launch services that Bisson says two years ago would have been business suicide, allowing Disney Lite and Hayu to enter the market,
Even Netflix, described by Bisson as the “poster child of TV disruption” was shifting its business model.
The streamer has reduced acquisition of older shows by 20 per cent, while at the same time has increased its original production by 30 per cent.
Until now, Netflix growth has relied on geographic expansion, but that epxansion is set to run to the end of theroad in 2017, so Netflix is now behavingning like a broadcast or premium channel group.
Research by Ampere has shown that SVOD-only homes are 50% more likely to be millenials, 40% to have young kids; 14% take pay tv service; 50% likely to take premium TV and 50% changed pay TV provider.
Also, Netlfix subscribers in the UK are also more likely to take other pay services such as Amazon (1.8 times more likely); Now TV (1.5 tims), ITV Player (1.4) and Spotify (2.5).