During Compact Disk, Digital Versatile Disk and Torrents era, we never realized that accessing songs, videos, movies and various other contents will be that easy and enjoyable with a single click. Media service providers like Netflix, Amazon Prime, Hotstar, Hulu and many other online streaming apps and websites offers online streaming of various genres of films and TV programmes inclusion of production-in-house contents just on the basis of subscription, all you have to do is to download their app and purchase a subscription which is absolutely affordable. This gives a wonderful opportunity to the Independent directors, scrip writers, freelance cinematographer, actors and more to collaborate with these giants in order to stream your content and achieve a reputation.
People are moving towards online media at a very fast pace. The amount of content available on these online media streaming apps and websites are much more as compared to contents available on channels. In fact, Online giants like Netflix, Amazon Prime and more has their own series and movies which increases the percentage of entertainment for users as well as for fresh starter. Channels too are promoting their own online app where people can watch the contents that are being shown on the channels for illustration Sony channel is promoting SonyLiv app where people can watch all their programmes and this app was downloaded and used more during FIFA World Cup 218 specially in India. According to Economic times, it was recorded that around 70 million viewers watched FIFA World Cup 2018 on SonyLiv app and according to moneycontrol.com 117 million viewers tuned in to watch FIFA World Cup 2018 on TV channel Sony TEN2. The statistics shows that the craze of watching content online has increased and will keep growing.
The total revenue generated according to statista.com in Video Streaming (SVoD) is US$19,572mn globally and when it comes to its annual growth rate i.e. CAGR (2018-2022) is expected around 5.1% resulting in a market volume of US$23,883mn by 2022. The User penetration counts to 8.1% in 2018 and would increase to 10.8% by 2022, its ARPU(Average Revenue Per User) is about $44.08 and maximum contribution in online streaming as per global perspective is from USA with $11,335mn in 2018.
Shows like House of Cards, 13 Reasons Why, Stranger Things, The Crown, Narcos made Netflix very popular. Netflix alone contribute to US$1169.2 crores (2017) and other giants like HULU contribute around US$240 crores (2017) and various other giants contribute to quite great levels. No doubt looking at the statistics one can see that online streaming is growing at a faster rate but will still take time to cover traditional TV as well as Movie industry since according to statista.com TV industry is way too ahead and will be contributing to US$227.4bn by 2021.
Now lets see what are the benefits/advantages of SVoD:
- Easy Accessibility
- Vast Source of Content
- Various Choices of selecting online streaming apps and websites
- With increasing technology, Online Media Provider too are running with technology
- Affordable Subscription
- Display Quality: High Definition
There is a proven phrase known as “Every Coin has two sides” hence it does carry drawback/disadvantage too:
- Bigtime Data Consumer: With HD quality print, data is consumed at a higher rate. Also along with data consumption, it consumes phone’s battery too!
- Addictive: The contents availability also leads to addictiveness. Once a person gets involved watching a series then no one can quit watching the whole series. Addictiveness might lead to quite bad health issues.
- No Internet->No Content: One need to have internet of at least 4G specially in India for a good speed.
- If number of viewers online are high then the content loading will take up sometime that might be a little frustrating.
There came a news in Indian Express last month i.e. June,2018 with the headline “Can Netflix buy Hollywood and would that be the end of Hollywood?” Well we cannot predict that so easily but yes Netflix now has that level of revenue where in it can acquire few media companies. With this I am closing up this blog! Thank you for taking out time to read this blog, I really appreciate. Also you can share your views in the comment section. Would love to hear what you think! Thanks in Advance and See you soon.