Graphically Speaking

How videos will stream in the future

Video streaming players are facing a challenging growth curve

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Published 4 years ago on Dec 12, 2016 Read

Streaming video on demand or SVOD has fast become a mainstay in developed markets, especially the US. However, the service is slowly saturating in connected households across income brackets, leading to decelerated year-over-year growth. This is expected to slowdown revenue growth in the coming years, according to media and internet research firm Activate. Most streaming services will struggle to find growth among older, lower-income users. Though Password sharing takes place within families, the habit is expected to limit the addressable opportunity that SVOD players are hoping for by drawing in potential future consumers. As a result, much of the growth will come from existing users who will double down on SVOD services. A chunk of SVOD customers is expected to be multiple-service users who will account for a lion’s share of the subscriber base by 2018. The only consolation for existing bigger SVOD players is that despite the presence of niche services from rivals, a majority of the subscribers will continue to stick to established streaming video platforms.