Revenue in the TV and video industry will grow by USD95 billion worldwide between 2019 and 2024. This report analyses how the relative importance of advertising, transactional and subscription revenue is changing.
In this report, we answer the following questions:
- How should companies with pay-TV and video operations recalibrate their services to maximise future revenue growth potential?
- How can the subscription model for TV and SVoD services be adapted and improved to maximise its appeal?
- How can operators capture more transactional revenue in a fragmented, OTT-heavy video market?
- How do players meet consumer expectations for ever-increasing amounts of ‘free’ content, overcome affordability issues in emerging markets and replicate the success of players that derive the majority of their revenue from advertising funding?
1. Executive summary
2. Analysis and recommendations
3. Finding opportunity in free and ad-funded models
4. Evolving the subscription model
5. Capturing transactional spend
Revenue in the TV and video market will grow by USD95 billion over the next 5 years, but traditional TV providers are not optimally positioned to capture this growth. To rectify this, payTV providers must embrace ad-funded innovation, broaden their subscription models and increase their transactional revenue.
Traditional subscription pay TV is failing to evolve with changing consumer viewing habits, which are themselves being molded by increased diversity in engagement models. Indeed, ad funding, OTT subscriptions and transactional sales will be the main sources of revenue growth in the TV and video market in the next 5 years. Providers of traditional services must therefore, change their engagement models to capture future revenue growth.
- Operators and late-entrant pay-TV providers should explore ways in which to access both the broader audiences that ‘free’ services attract, and the potentially sizeable revenue from addressable advertising.
- Pay-TV providers should adapt their subscription models by changing how content is delivered and how prices are set.
- Subscription players should increase their addressable market by considering using transactional business models for pay-per-view sports content.