Posts tagged ‘SVOD’

Australian SVOD player Quickflix looks to fund upcoming fight with Netflix

November 24, 2014 5:50 am


Quickflix, one of several SVOD competitors digging in to battle Netflix when it launches down under in March, closed Q3 with AUS$2.7 million in the bank and is...

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Sea change in television as viewers flock to digital

November 13, 2014 8:15 am


Cable and broadcast networks are feeling the effects of their viewers’ growing digital migratory patterns and taking steps to plan for the future. Variety reported that most of...

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SVOD: Changing the content landscape again

November 3, 2014 8:37 pm


SVOD players are changing the television landscape daily – not merely through siphoning eyeballs away from broadcast and cable TV, but through altering the entire Hollywood content production...

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For LatAm operators, OTT is an opportunity… and a threat

November 3, 2014 7:52 pm


Latin American pay-TV operators have a window of opportunity to offer video-on-demand or subscription video-on-demand services to compete with – or be complementary to – Netflix in their...

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October 6, 2014 7:49 am

Say goodbye to Verizon's SVOD play, Redbox Instant

Taking on a company that’s got momentum, the support of its customers and also offers good customer support isn’t easy… just ask Verizon, which this week said it’s shutting down its lackluster foray into OTT, Redbox Instant.

The service, which was announced in December 2012 but didn’t actually launch until March 2013, announced its own demise on its website this weekend.

“The service is shutting down because it was not as successful as we hoped it would be,” read a notice on the site. “We apologize for any inconvenience and we thank you for giving us the opportunity to entertain you.”

Verizon’s Netflix killer never caught on, never mattered to consumers who saw the Netflix-lite offering as just that, a pale imitation.

That the joint venture maintained a connection to physical DVDs as well as streamed content was a sign that the telco couldn’t really commit, three years ago, to the concept that streaming was legitimate.

Redbox Instant subscriber numbers haven’t been shared, but it’s safe to say that – like Comcast’s Streampix – they were underwhelming.

Comcast, while not pulling the plug on its SVOD service, has move it into that netherworld of “value added products” that can easily be faded to black.

Concerns that Redbox Instant was on the ropes first surfaced back in May, when parent Redbox was reported to be trimming some of its 40,000 kiosks in the U.S. after yearly operating income that saw jumps of 74% in 2011 and 41% in 2012 was flat in 2013 at $239 million. The company is citing efforts to focus on efficiency rather than growth.

Back in December 2011, Verizon was rumored to be in talks with Netflix, but the talks turned out actually to be with Redbox, which analysts called “a better fit.”

Um, no.

Dish’s failed to resurrect the Blockbuster brand as its streaming service because it failed to bring enough content to the brand to make it attractive to consumers. In the case of Comcast’s stalled attempt with Streampix and now Verizon’s abandonment of Redbox Instant, the problem may be that consumers struggle with the idea of paying their providers extra for an SVOD service when they’re already paying north of $100 a month for standard services. Especially if it’s not Netflix.

Can a provider SVOD service work?

Sure. But it has to have a value proposition that’s obvious to consumers, the service needs to be robust and at least competitive with the market leader – Netflix, Amazon Prime instant and Hulu Plus – and it needs superior search, discovery and recommendation.

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Netflix users stream 1.5 hours a day, more than 7B hours in 2Q

September 26, 2014 8:00 am

Netflix users watched 1.5 hours of streaming a day

Netflix subscribers averaged 46.6 hours of streaming per month – more than 1.5 hours a day — in the second quarter, up nearly 20% since 2013 and more than 27% from the same period in 2012.

Its rapidly growing subscriber numbers, however, has pushed its overall streaming up some 350% since 4Q2011 to 7 billion hours, up from 2 billion hours, according to research from The Diffusion Group.

Netflix currently has more than 50 million subscribers globally, with more than 36 million of them in the United States.

“Netflix is the big dog of online SVOD and sets the bar when it comes to viewing hours,” said TDG co-founder Michael Greeson.

In the U.S., Netflix streaming reached 5.1 billion hours in 2Q2014, an increase of 183% over the 1.8 billions hours recorded in 4Q2011.

Global streaming numbers increased nearly 10X to 1.9 million hours in the past quarter compared to 200,000 hours in 4Q2011.

U.S. streaming hours accounted for about 72% of the total Netflix streaming globally. That’s down from 94% in 3Q2011.

As Netflix continues to build out its international business – a recent study from Digital TV Research estimates Netflix could have 104 million international subscribers by 2020 – the U.S. share of total hours will continue to decline.

The company this month launched in two of Europe’s biggest markets, Germany and France, as well as in Switzerland and Austria. It’s expected to roll out soon in Luxembourg and Belgium.

A number of other countries have been rumored as targets for Netflix’s next round of expansion including Australia and Spain, but the company also is rumored to be planning a foray into Eastern Europe and Russia soon.

“When Netflix first launched in 1998 as an innovative DVD-by-mail subscription service it would have been difficult to imagine that, not only would it pass HBO to become the largest premium TV/movie subscription in the US, but that it would be ramping up a formidable international streaming business,” notes Bill Niemeyer, TDG Senior Adviser and author of the new report.

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Online TV, video revenues to exceed $42 billion by 2020

September 24, 2014 6:19 am

Global online video revenues to exceed $42 billion by 2020

Global online TV and video revenues are forecast to exceed $42.3 billion in 2020, an increase of more than 123% over expected 2014 revenues of $19 billion, and a whopping 968% increase from 2010’s $3.96 billion.

The kicker? Those figures are only for online and TV revenues delivered over fixed broadband networks for 51 countries… more on that later.

This report, from Digital TV Research, forecasts the United States to remain atop the heap in terms of global market share, but says its lead will erode substantially

In the U.S., 2020 revenues are forecast at $15.5 billion, up 565% since 2010 revenues of $2.3 million.

Its share, however, will decline to 37% from the 59% it saw in 2010.

China’s revenues are forecast to explode over the rest of the decade, rising more than 8,097% to exceed $3 billion in 2020 from just $37 million in 2010, moving it into second place globally behind Japan.

Online TV and video advertising is forecast to exceed $18.1 billion in 2020, up from $8.3 billion expected in 2014 and $2.4 billion in 2010, a 118% increase in the next six years.

SVOD revenues are forecast to increase to $168 billion in 2020, DTVR said, up 119% from $7.65 billion in 2014 and more than 1,482% from 2010.

The U.S, share of SVOD in 2010 was 75% on revenues of $793 million in 2010. Its share in 2020 will tumble to just 36% of the world market, despite an increase of 667% to $6.1 billion.

DTVR said PPV revenues would expand rapidly, reaching more than $2.8 billion in 2020 from $197 million in 2010, and forecast TVOD revenues of $4.6 billion, up from $332 million in 2010.

But, as I mentioned earlier, key to all of this is the caveat that these revenues represent just those delivered from fixed broadband networks.

A UN Broadband Commission report this week said broadband was the “fastest growing technology in human history,” and said broadband would be available to more than 50% of the world’s population by 2017.

But, it said, some 80% of users will access broadband from a mobile device, either a tablet, smartphone or ultratablet.

Ooyala’s Global Video Index, meanwhile, said mobile video views made up more than 25% of all video views in Q2 2014, and forecast that number to increase to more than 50% by 2016.

While the fixed broadband network is forecast to grow rapidly through the end of the decade, the mobile market, ultimately, is likely to be an even bigger force in driving online TV and video growth in the same time period and beyond.

Follow me on Twitter @JimONeillMedia


September 18, 2014 6:15 am


It’s been a busy week for Netflix, which had a rocky start in France on Monday, and a smooth deployment in Germany on Tuesday.

The California-based company continued its European rollout this week with launches in Austria and Switzerland; Belgium and Luxembourg are next up.

As in France and Germany, Austrians can get the SVOD service for 7.99 Euros a month. Swiss subscribers will pay 9.85 Euros per month.

Subscribers can access content through connected TVs, computers, tablets, smartphones, gaming consoles and connected Blu-ray players.

Netflix has been adding country-specific content for the bulk of its international deployments, including the Nordics, United Kingdom and Ireland, France and Germany, but neither Austria nor Switzerland is slatted to launch with any local content. But, that’s likely to change as the service adds subscribers. Netflix CEO Reed Hastings has said local content is crucial to success in the company’s international play.

The Austrian service is available at; In Switzerland it can be accessed at

While Netflix has not yet announced new countries it plans to expand into, the likely target is Australia, where the service already is heavily used by consumers skirting geo-blocking through VPNs. It’s estimated that as many as 200,000 Australians already pay for the U.S. version of Netflix, making it one of the largest streaming services in the country.

Netflix also may have tipped its intentions to deploy in Oz when it acquired the SVOD streaming rights in Australia to the upcoming Warner Bros.’s series “Gotham.” Nine Entertainment holds first-run rights to the series, which is expected to air in Australia later this year. Netflix would likely put the entire series up a year after its completed linear run.

Rumors also have circulated that Netflix will be offered in Spain in 2015.

Of course, the OTT-hungry markets in Central and Eastern Europe also continue to develop, and some pundits say a more natural path might be into English-speaking Africa.

The certainty? Netflix will continue to rapidly expand its global web.

Follow me on Twitter @JimONeillMedia

Netflix Internet traffic in Canada triples in just 3 years

September 18, 2014 5:37 am


Canadians are as tied to Netflix as their cousins to the south, with nearly 40% of downstream traffic in the peak evening hours on select networks attributed to the streaming service. That’s roughly triple the traffic the service generated in Canada just three years ago.

And, said Sandvine, in its latest Global Internet Phenomena Program, no other OTT service comes close. The next highest SVOD service generates just 1% of traffic. But, said the company, that may be tied more to a lack of competition from strong services like Hulu and Amazon Prime Instant Video than from a lack of interest from consumers, which should make Canada an attractive target for other services.

As for mobile traffic, more than 20% of all downstream traffic is YouTube video, making it the largest single traffic generator in Canada.

Sandvine said a variety of social networks combine to generate about a quarter of all mobile traffic, with the three largest consumers of data being Facebook, Instagram, and Twitter.

The top streaming content? Hockey. O, Canada!

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Report: APAC to add 231 million OTT HH by 2020; SVOD expected to double

September 9, 2014 5:31 am

SVOD subscribers to double by 2020

More than 706 million households – nearly half the world’s TV HH — will be watching online video globally by 2020, a new report says, up from 374 million forecast for 2014. In 2010, just 197 million households watched online video.

The biggest gains, about 61%, will come in APAC, according to Digital TV Research. The region is expected to add some 231 million over-the-top video households by 2020.

China is expected to add 140 million viewers, giving it an OTT audience of 206 million HH, and is expected to surpass U.S. viewers by the end of this year, making it the largest OTT market in the world.

The report said South Korea will have the highest OTT penetration by 2020, with more than 79% of HH receiving OTT.

Subscription video on demand (SVOD) is expected to more than double to 199 million subscribers, from 83 million in 2014.

While the U.S. is expected to remain the biggest SVOD market at 62 million subscribers, North America’s SVOD share will fall from its 57% slice in 2014 to 34% in 2020 as the rest of the world accelerates its adoption of the business model.

About 6% of the world’s HH currently get an SVOD service like Netflix or Amazon Prime Instant Video. That number is expected to more than double to 13.4% by 2020.

The U.S. at 50% is expected to have the highest SVOD penetration, followed closely by Sweden at 49%. Ten countries will have SVOD penetration in excess of a third of TV households by 2020.

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Canadian online video viewing up 46% as traditional TV slips

September 5, 2014 12:51 am

29% of English-speaking Canadians subscribe to Netflix.

On the heels of a report from Ericsson that said consumers were watching nearly as much streaming TV as traditional TV, Canada’s broadcast regulator has issued its own report that said Internet viewing was up and TV viewing down in 2013.

The Canadian Radio-television and Telecommunications Commission in its annual report said Canadians increased their Internet TV viewing by 46% to 1.9 hours a week, and said viewers across all age groups watched less TV in 2013 than they did in 2012. Viewers aged 18- to 34-years-old trimmed their viewing time the most, about 4%.

The CRTC said time spent watching traditional TV – about 20 hours a week – is 10X more than online video viewing time, but reported the lead continues to narrow.

Netflix has had a big impact, and it’s continuing to grow. Twenty-nine percent of English speaking Canadians now subscribe to the SVOD service, up from 21% a year earlier. Among French-speaking Canadians, adoption has increased to 7% from 5%, the CRTC said.

“The [traditional] companies are trying all sorts of tactics to increase the use of mobile TV by their subscribers because it’s a way to offset the pressure on conventional TV,” Maher Yaghi, an analyst at Desjardins Securities, told the Financial Post. “So the faster that part of the business grows, the better it will be for them. But at this point it’s still not big enough to compensate for the decline in the overall pie.”

In 2013, pay-TV operators saw revenues slip1.6% to $5.4 billion, the second consecutive year of declines.

Online video revenues in Canada, meanwhile, increased 10% to $926 million.

Follow me on Twitter @JimONeillMedia