• Subscribe
  • Advertise
    • Media Info
    • Terms & Conditions for Advertisers
    • Mechanical Data

Broadband TV News

Independent. Since 2003

  • Home
  • News Line
    • Central & East Europe
    • People
  • TV
    • On Demand/VOD
    • IPTV
    • Cable
    • Satellite
    • Terrestrial
    • Distribution
  • Business
  • Tech
  • Columns
    • Chris Dziadul
    • Julian Clover
    • Robert Briel
  • Events
    • Events Diary
    • BTN Events
    • Events Coverage
    • Submit the details of your event
  • Features
  • Resources
    • White Papers

IHS Markit: US D2C market to add $3.6 billion by 2023

February 21, 2019 17.17 Europe/London By Broadband TV News Correspondent

Major new subscription services to add $3.6 billion to the US Direct-to-Consumer Video Market by 2023, said IHS Markit.

New direct-to-consumer online video subscription services from the Walt Disney Company, Apple, and Warner Media are expected to launch in 2019, with NBCUniversal following in 2020. These new services have the potential to add 53 million paying subscriptions to the United States market by 2023, effectively growing the total number of subscribers by 25 percent. This subscription growth would generate up to $3.6 billion dollars in incremental revenue for the direct-to-consumer channels business in the US by 2023, according to business information provider IHS Markit.

“Subscriber growth of this magnitude assumes an aggressive strategy from all the major services,” said Dan Cryan, executive director of research and analysis, IHS Markit. “This strategy could include making movies avaiable earlier or bundling, either at no extra charge or as a low-cost add-on, with other products and services that already have large customer bases. Less aggressive policies would result in lower overall subscriber growth, but they would still expand the video subscription market.“

According to the Disney, Apple, Netflix: Scenarios for the Future of Online Video report from IHS Markit, Netflix and Amazon Prime will continue to lead the market for the next few years. However, Apple could potentially catch up with Hulu by 2023, depending on what happens to that service after Disney’s acquisition of Fox has been finalised. “A successful Disney service would also be among the top-tier services in the US by 2023,” Cryan said.

In all scenarios explored in the IHS Markit study, the market for pure-play video services will become exceptionally competitive. It also seems likely that high-quality content will soon not be enough to guarantee success, because there will be a large number of competitors with their own strong content libaries. Consequently, by 2023 there are likely to be very few pure-play subscription-video channels with significant scale in the United States.

“As the video subscription market grows and becomes more competitive in the long-term, the focus of the battle is likely to shift away from the questions about the available content, toward a discussion of the other assets these companies can leverage. Examples include heavy cross-promotion on traditional TV channels, theme parks and other properties, or packaging with other services, like mobile phones.”

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)

Related

Filed Under: Newsline, Research Tagged With: Apple, direct-to-consumer, IHS, US, Walt Disney Company, Warner Media Edited: 21 February 2019 17:17

Latest News

  • ITV secures LaLiga in three season deal
  • Rome Court of Appeal rejects Vimeo petition
  • Major US pay-TV providers drop 1,925,000 subscribers in 2Q 2022
  • KPN signs multi-year HBO Max partnership
  • YouTube channel store to launch this autumn

Watch Video

24i on app development and viewer recommendations – ANGA COM Roundup Video

Julian Clover speaks to 24i's Sales Director Operator Solutions, Lennart Broers, about how apps are becoming more important to pay-TV operators, and the recent acquisition of recommendations company The Filter. … [Watch Now ...]

EKT backing RDK – ANGA COM Roundup Video

Jill Mulder, VP Marketing, EKT discusses how viewing habits and the role of the operator is changing and why EKT now backing RDK, with Broadband TV News editor Julian Clover. … [Watch Now ...]

Free Ebook

eBook: The Full Guide to IP Monitoring

IP is the future of your facility, if not already your everyday reality. It enables incredible agility and cost savings, but also introduces a new set of challenges. Read The Full Guide to IP Monitoring to learn about the best practices for IP monitoring in live production, playout and OTT and the methods to help you to reduce complexity in these workflows. … [Download the eBook...]

Broadband TV News

  • Subscribe
  • About us
  • Contacts
  • Logos & Pictures
  • Privacy Policy
  • Terms and Conditions

Advertising

  • Media Info
  • Terms & Conditions
  • Mechanical Data
  • Video Services

News

  • Latest
  • Central & East Europe
  • TV
  • Tech
  • Streaming
  • Cable
  • Satellite
  • Terrestrial
  • IPTV
  • Business
  • People

Events

  • Events Diary
  • BTN Events
  • Submit the details of your event
  • Media Meet & Greet

Broadband TV News

PO Box 499
Cambridge
United Kingdom
CB1 0AH
news@broadbandtvnews.com

Connect with Us

 

Copyright © 2022 Broadband TV News LLP · Log in

 

Loading Comments...