The 2010s changed home entertainment forever. During this decade, power and momentum swung towards global subscription video on demand (SVOD) platforms selling their content directly to consumers. However, the same period may have been a zero-interest rate phenomenon. These subscription streaming giants are here to stay, but their distribution strategy will become increasingly indirect.
Deloitte predicts that the industry will shift away from standalone subscription services towards aggregation, similar to traditional pay TV packages. SVOD platforms need aggregators as they reach saturation in major markets and seek creative ways to reach new audiences and reduce churn. While revenues may still increase with price rises, bundling and password crackdowns, we expect the aggregate number of standalone subscriptions will likely fall.
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This shift back towards aggregation, while seemingly regressive, is a necessary evolution for the streaming industry, benefiting both consumers and providers.
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