The internet has improved its multimedia capacity processing large amounts of information, streaming videos and providing downloads with good definition and quality audio.
This has been a great year for the companies that provide Subscription Video on Demand (SVoD)service. In the United States they were favorited by 80% of the population, leaving behind traditional sales or rental of video content, whose profits went from $33 billion in 2017 to $32.5 billion in 2018. This number has undoubtedly made investors think of possible ways to renew the service they offer and avoid being left behind by the competition.
The possibility of choosing when and how to associate and disassociate from a service without being sanctioned or being under contract for a certain period of time in order, is perhaps one of the greatest advantages that SVODs have over cable, rentals or paid television services. They give users the freedom to choose how to enjoy their favorite content and that is what attracts the attention of users today. But in order to retain their customers, this also commits services to create new content, strategies and ways to entertain every day.
Netflix, the biggest player in the field of SVOD, with more than 120 million subscribers, according to its latest report, has managed to position itself as the leading company in content streaming. The platform allows a single subscription to connect up to four devices for less than $20 a month, without limiting the number of users who can access the same account. Hulu’s live TV services allow you to connect to as many compatible devices you want simultaneously as long as they are all connected to the same home network, and up to three mobile devices when they are outside this network’s range.
According to thenScreenMediaportal, losses during the year for video sales and rental services were 12%, while video and digital disc rentals fell 7%, disc sales 21%, and kiosk rentals 11%. However, digital sales increased by 10% and online rentals 2%.
On the other hand, paid TV dominated the revenue image for entertainment even though its revenue and shares decreased, box office share of spending increased from 8.7% to 10.6%, subscription transmission went from 7.4% to 9.6%, and subscription transmission expense increased from $2.4 billion to $3.2 billion in the second quarter of 2018 with Netflix as the largest revenue component holding 60% of total spending, according to The Digital Entertainment Group.
In addition to this, the four highest grossing films were Avengers: Infinity War ($672 million), Incredibles 2 ($426 million), Deadpool 2 ($309 million) and Jurassic World: Fallen Kingdom ($246 million).
For its part, Dataxis, in its most recent report on SVOD in Latin American territory highlighted that they are showing great growth potential. Data from 2017 recorded accounts with a reach of 17.4 million customers to double its volume to reach 33.5 million in 2022.
The large number of digital options that have not stopped growing, has created the need to be unique and standout. The impact of internet, new technologies and the effort that they require, forces content creators to be innovative and intelligent when trying to understand how to position a brand from the promotion and marketing perspectives that are carried out through a range of social networks, consoles and decoders that receive signal by cable in combination with other existing multimedia communication platforms.
The Internet has improved its multimedia capacity to process large amounts of information, streaming videos, well-defined downloads and quality audios, which has allowed viewers to add the option of viewing the content through their computers.
This process of convergence has gone even further with Internet-enabled multimedia games or consoles, such as Playstation, Wii and Xbox. They offer the possibility of bringing to our TV set a deployment of television channels on demand through Internet, some of them even tailored to the taste of the viewer.
Competing is undoubtedly a great challenge, not only for video sales and rental services, but for all other entertainment platforms that have not acquired the internet as one of their tools. Today, the comfort of the consumer is the main focus of all industries, especially the entertainment industry. That, apparently, according to statistics, can only be achieved by adapting to the technological era that surrounds us.
With information from:
