Industry News

The streaming wars is about global distribution and investing in programming

23 August, 2021

In the past two years, media companies have launched direct-to-consumer video services to compete with Netflix. All of them have been following category leader Netflix with global expansion and investing billions of dollars in content. As a result, the demand for streaming video remains strong.

For example, DEG estimates consumer spending on SVOD providers grew 21% in the first half of 2021 reaching $12.2 billion. Kantar estimates that three-quarters of U.S. homes have at least one streaming service. Nielsen’s monthly Gauge Report for July says streaming video accounts for 28% of all viewing among persons 2+, up 2% from May.

Additionally, based on second quarter 2021 earnings reports from media companies, streaming video has become a priority ahead of traditional cable and broadcast television. To be competitive, industry analysts expect an increase in mergers, such as Discovery and Time Warner or partnerships, such as the recently announced SkyShowtime between Comcast and ViacomCBS, expected to launch in western Europe next year. SkyShowtime is also an example of streaming video providers strategy to distribute content globally.

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