The digital revolution has changed the way of watching television, thousands of users have changed their preferences after the arrival of wireless services. The evolution of Internet connectivity made people see news, sports, fashion, entertainment, among others, in a different way.
The growth of SVOD platforms is the result of that commercial model that offers subscription videos, companies such as Netflix were able to pave the way for their growth, however, at present the market is so large, without time or geographical restrictions that they make it a perfect investment.
What are SVOD platforms?
SVOD is a type of video-on-demand service, which allows users to have a complete library for a monthly or annual payment. Once the subscription is paid, users will have access to the videos using any device with an Internet connection.
The SVOD platforms give users the freedom to view content from any place and time, without being subject to any type of contract. These are some examples that you may know: Netflix, Hulu, HBO, Amazon Prime, Disney +, YouTube Tv, ESPN +, Sling TV, DirecTV Now, among others.
Some platforms that offer SVOD services originally started with specific content, such as:
- Pureflix: dedicated to pure entertainment.
- Love Nature: wildlife content.
- Fubo TV: dedicated to sports programming.
- Muslim Kids TV: educational content aimed at Muslim children.
- Topic: cultural and historical content
These platforms offer quality services in 4K format, free trials, among others. Consumers feel a sense of belonging when they view exclusive content that is not available to everyone.
An analysis showed that 52% of SVOD users accessed the services through free trials.
How have SVOD platforms grown?
Today there are a large number of options for users of SVOD platforms. In 2020 there was an exceptional growth of these services, for example:
- Disney + closed with 87 million subscribers.
- Netflix increased its data with 37 million new users.
- Hulu finished in third place with 13 million users.
According to data from Ampere Analysis, there are currently about 340 million subscription OTT contracts in the US alone, that is, the contracts exceed the number of inhabitants (approximately 328 million), which indicates that for each household they are subscribed up to 4 different services.
In this way, a post-health crisis world is envisioned with a burgeoning market for SVOD services. Currently, the revenue of the streaming industry has reached figures that exceed 72 billion dollars, this thanks to the SVOD platforms, with a prediction of 100% growth by 2025.
Cable and satellite television have begun to decrease their numbers, it takes time to adapt to the changes, however, experts believe that traditional media are not prepared to survive OTT services. 5G internet, cloud technology, smart devices and artificial intelligence will contribute greatly to the expansion of SVOD services.
The use of SVOD platforms are shown as an excellent option to scale in a business, therefore, with a good preparation of the audience and coordinated strategic actions, driven by technological advances with higher download speeds, great opportunities are looming for users. SVOD service providers. At JUMP TV we can advise you to take advantage of the full potential of your pay television.